The big famous cantonement is also a big railway junction, Ambala is a bustling town today. There are a number of stories regarding the name Ambala. According to one, this town was founded in the 14th century by one Amba Rajput. According to another the town is named after the Goddess Bhawani Amba. Yet another story claims that the town was originally called Amb Wala (Place of Mangoes), and over time this got corrupted into the present name of Ambala. But it became famous only when the British shifted their cantonement from Karnal to Ambala after an out break of Malaria in Karnal.
Today Ambala is famous for its industries of scientific instruments, metal casting, kitchen mixer grinders and submersible motor pumps. Being on the borders of Punlab many Gurudwaras dot the city and so do the churches as an impression left behind by the British. Apart from the ancient Bhawani Amba temple, there are two beautiful gardens and one palace called Rang Mahal built during the reign of Shahajehan.