The Panhalakaji caves are located on the Dapoli-Dabhil Pangari road. The road goes right up to the caves. It is situated deep in the valleys and is surrounded by jungle and river which are filled with birds and reptiles.

Discovered in 1970 Panhalekaji is a complex of 28 - 29 caves filled with exquisite art value wrt architecture and quality of craftmanship. These budhist caves have a few inscriptions in Brahmi and Devanagari and also remnants of statues from 3 AD. Panhalekaji is about 35 Kms from Dapoli and the drive will take just over an hour from Dapoli but well worth it!

All 29 caves are not placed next to each other; they are spread around the entire site. Some inscriptions in Brahmi and Devanagari languages are also there inside Panhalekaji caves. There are no informative boards or name plates regarding caves in the Panhalekaji caves area. There is a big boulder in a river nearby with carvings of four doors on it.

Representations of Matsyendranatha, Adinatha and Uma are there inside cave number 29. This cave also hosts sculptures of Goraknatha and Maha-Tripurasundari. Different panels inside this cave show various figures. Small panels in this cave have 84 Siddhas. Buddhist stupa from the 3rd century AD is in cave number 5.