Badami, formerly known as Vatapi, was the capital of the early Chalukya rulers during the 6th-8th centuries. The town is situated between two rocky hills of red sandstone that surround an artificial lake.

There are two forts - one on each of the hills, that overlook the town. Around the south fort are four rock-cut shrines, while there are a number of temples in the vicinity of the north fort. At the eastern end of the lake stands the Bhutnath temple complex.