The city is primarily known for Baidyanath Temple, one of the 12 Jyotirlingas of Shiva, one of the principal deities in Hinduism.

The city is administrative headquarter of Deoghar District which comes under Santhal Parganas division of Jharkhand.

[4] Deoghar is situated on the bank of Ajay river (which originates from Batpar village of Jamui district in Bihar) and its tributary Dadhawa river (which originates from Purnia Lake near Karangarh village 24°35′44″N 86°28′28″E / 24.595501°N 86.474369°E / 24.595501; 86.474369 in Jamui district of Bihar).

Dighriya Pahaad forms the western boundary of the city and there is a national park being constructed on these hills.

[13][14] Industry in Deoghar is mainly based on IT, agriculture, hospitality, petroleum, tourism, and in the service sector.

Some large industrial projects are also present: Indian Oil Corporation has one of its terminals in Deoghar.

After the opening and coming of this terminal, the unemployment rate has decreased because of many people getting jobs from this company.

This company has set up many IT park branches in many cities such as Bangalore, Hyderabad, Patna and Ranchi.