Kotkhai is a town and a Nagar Panchayat in Shimla district in the Indian state of Himachal Pradesh.The name Kotkhai is derived from Hindi language where the name "Kot" means Kings Palace and "Khai" means trench, therefore "Kotkhai" means "Kings palace situated in trench".

Initially Kotkhai was a princely state of the British Raj and was founded around the 12th century AD, by the descendants of Kartar Singh (younger brother of Rana Kirat Singh, "founder of Kumharsain state").

This palace shows Pagoda style constructions with wooden carvings.

It is picnic spot center decorated with apple gardens and lush green pastures.

Thotha is the traditional game of Kotkhai, which the region has been hosting for a number of years.

It is one of the largest apple growing valley in Himachal Pradesh and also a significant contributor to the per capita income of the state.