The settlement was located on the bank of the Kali river and developed into an industrial town with the establishment of a number of companies, including The Indian Plywood Manufacturing Company, Lalbhai Ferro-manganese Factory, West Coast Paper Mill, Indian Saw Mill, and a number of small industries around the Dandeli and Karnataka Power Corporation which were engaged in the construction of several power-generating dams at different places along the Kali river.

Because of good forest cover and moderate elevation, the location has a tropical highland climate, averaging about 27 °C (81 °F) in summer and 18 °C (64 °F) in winter.

Dandeli is a natural habitat for wildlife, including tigers, leopards, black panthers, elephants, gaur, deer, antelopes, and bears.

[7] The rapid expansion of industry has raised fears of ecological damage to the area, and local volunteer groups have formed to address the issue.

The biodiversity in the forest has attracted sufficient tourism to support a number of resorts in the vicinity of Dandeli.

Dandeli also offers many other adventure activities like Kayaking, Zorbing, Jungle safari, Cannoeing, River crossing etc.

Dandeli is surrounded by natural, historic, and religious landmarks: the River Kali, the caves of Kavala, the Syntheri Rocks, the Ulavi temple, and Sykes point.

Other tourist activities include nature walks, boating, bird watching, crocodile spotting and angling.