The name "Chhaling" is believed to be derived from two words: "छाले गाउँ" ("Chhala"), meaning "skin", and "Gaun", meaning "village", as it was believed to be an area of animal skin and leather materials during the 18th century.

[citation needed] Most of the inhabitants are Brahmins and Chhetris, but there is also a large population of "Sanyasi" (meaning "saints" or "sages") and few Newars too.

[citation needed] During the ancient kirat and lichhavi dynasties, Chhaling was known as Gopal dranga under king Prathav Malla of Bishal Nagar.

[citation needed] Chhaling has been a major route to one of the most popular tourist destinations near Kathmandu: Nagarkot.

There are also a number of popular religious destinations, such as Panchamukhe Hanuman (also called Trisuldada), where the biggest copper trident in the world is believed to be located.