Neighbouring villages include Khurampur, Khatti, Barn, Kishanpur, Nangal Maja and Dhak Palahi.

According to local legend, Palahi takes its name from Palah (Butea monosperma trees) found in abundance in the area in times gone by.

Palahi has been hosting a Jor Mela in connection with the Aagman Purb (arrival) of Sri Guru Hargobind Sahib Ji in the village since 1917.

in the year 2014, Industrial Training Institutes is started in name of Jagat Singh Palahi .

The ancient village Palahi is situated at National Highway 344A (Chandigarh Road) which is 2 km from Phagwara, in north side.