The Parbati Valley Geothermal Field is divided into five sectors and out of these a geothermal exploration program has been launched in two sectors - Manikaran and Kasol. This field lies to southwest of the Central Crystalline axis where profuse igneous activity has taken place during Tertiary Times. This activity appears to be the main source of heat supply to the field, although contribution of some-heat through radioactive disintegration can not be ruled out. A tear fault with one kilometre displacement, picked up in the Parbati Valley, and fractures related to it may be providing the ultimate major channels for the upward movement of the hot fluids while joints in the country rock serve as immediate channels for these fluids. Spontaneous polarisation and resistivity geophysical surveys pointed to the presence of some significant zones of thermal activity and possible shallow sub-surface channels for movement of thermal fluids at Manikaran whereas resistivity surveys pointed to the existence of shallow hot zone at Kasol. Surface manifestations of thermal activity at Manikaran and Kasol are in the form of hot springs recording temperatures from 37 C to 96 C. The base temperatures of thermal fluids of Manikaran sector as calculated from Na-K-Ca and silica thermometry comes to 197 to 203 C and 131 to 138 C respectively. The average geothermal gradients in the drill holes at Manikaran vary from .0.12 C/m to .14 C/m in the depth range 0-76 m. and at Kasol from +0.16 C to +1.25 C/m in the depth ranges of 0 to 40 m. Beyond these depths reversal of gradients is noticed