Pushkalavati (in and near modern-day Charsadda) is an ancient site situated in Peshawar valley in the Khyber Pakhtunkhwa province (formerly NWFP) of Pakistan. It is located on the banks of Swat River, near its junction with Kabul River. Pushkalavati meaning Lotus City was the capital of ancient kingdom Gandhara from the 6th century BC, when it became an Achaemenid local capital, to 2nd century AD. According to Ramayana, it was named Pushkalavati because it was founded by Pushkala, the son of Bharat (and hence nephew of Rama, the hero of Ramayana).
The ruins of Pushkalavati consist of many stupas and sites of two old cities.
Bala Hisar site in this area was first occupied in the 2nd millennium BC.
In later 6th century BC, Pushkalavati became the capital of the Achaemenid Gandhara satrapy. The location was first excavated in 1902 by the archaeologist John Marshall. Sir Mortimer Wheeler conducted some excavations there in 1962, and identified various Achaemenid remains.
Later in the regions historical chronology, King Ashoka built a stupa there which was described by Xuanzang when he visited in 630 AD, which to this day remains unidentified and undiscovered.
The Bactrian Greeks built a new city (Peucela or Peucelaitis) at this site which lies one kilometre from Bala Hissar on the other side of the branch of River Jinde. This city was occupied by Parthian, Sakas and Kushans and subsequently became known as Shaikhan Dheri (AKA Shaikhn Dher, etc.). In 2nd AD, river changed its course and city was flooded. The town moved to the site of the modern village of Rajjar.