Dhan khola is old place situated in the north-east of Kapilvastu, west of Suraginaka and on the banks of Deukhuri. the name Dhan Khola so came into exsistence when people transformed the name Dhankachet which means group of big stones. there is a Shivalaya in this place which has its own religious importance. according to the folk stories , when Lord Shiva used to sit in Parbat, people used to come to that place to cut ‘Khar’ making loud noises. this disturbed Lord Shivaso he used to hide behind the stones to avoid the noise. later during highway construction, image of Shiva was found which was then formed as temple in Dhankola. there is a dense forest and cave at this place which kind of provides evidence of people’s civilization years ago. In 1980, during road construction of East-West highway, various idols of Shiva, Parbati and Ganesh of different shapes and sizes and coalrimet stones were also found. So as to study the archaeological aspects of this place, historian GudrunKowinch from German Enlargen University visited the place, took notes and photographs in 1983-84. people comprehend the different structures present in the hillsides formed through natural process in their own respective ways. despite being an isolated area, a Shiva temple was built after people started living besides the highway. due to favourable geographical features and living conditions, this place possibly was house for ancient human. the various stone equipment found scattered and buried in Dhad and Surayi river proves this fact. so scientific study of this place ought to be done in order to unveil the historical data.