Jaisalmer is also known as The Golden City. The town stands on a ridge of yellowish sandstone, crowned by a fort, which contains the palace and several ornate Jain temples. Many of the houses and temples are finely sculptured. It lies in the heart of the Thar Desert and has a population of about 78,000. It is the administrative headquarters of Jaisalmer District. Jaisalmer is named after its founder Rawal Jaisal. Jaisalmer means "the Hill Fort of Jaisal". Jaisalmer is also called as the Golden city of India because the yellow sand gives a yellowish-golden touch to the city & its surrounding area.

The main source of income was the levies on the caravans. However, the glory of Jaisalmer faded when Bombay emerged as a port and the sea trade replaced the traditional land routes. The partition of India in 1947 lead to closing of all the trade routes on the Indo-Pak border and rendered Jaisalmer a drought-prone desert backwater on the international border. Ironically, skirmishes between India and Pakistan gave Jaisalmer a strategic importance and made it serviceable as an army supply depot. Later, the Rajasthan Canal served to revive the surrounding desert areas. Roads and railroads were then built, knitting the hitherto remote town with the rest of Rajasthan.

Tourism is a major industry in Jaisalmer. Musicians and dancers are also a major cultural export of Jaisalmer to the rest of the world, Manganyar musicians played the world over since decades, and Queen Harish, the dancing whirling desert drag queen, certainly the most talented dancer from Rajasthan, is touring the world extensively and features in international movies. Jaisalmer Fort was Built in 1156 by the Bhati Rajput ruler Jaisal, it is situated on Trikuta Hill and had been the scene of many battles. Its massive sandstone walls are a tawny lion color during the day, turning to a magical honey-gold as the sun sets.