Damauli is located in the Tanahun district and is situated on the road from Kathmandu to Pokhra. It is a small hustling bustling town located on the confluence of small rivers Sati and Mahendi (Mahendri).

The most important location here is the birth place of Sage Vyasadeva. This vyasadev belongs to a different kalpa and is not the current Vyasa known as Krishna Dvaipayana Vyasa. There is a beautiful cave where Sage Vyasa compiled all Puranas and nearby on the confluence of two rivers is the place of ashram of Parasara muni where he along with Satyavati gave birth to Vyasa. The cave of Vyasa also has next to it a small temple with 28 deities of all different Vyasadevas with their names who have appeared so far. It is said that while Vyasa took his birth here, he later moved to Badrikasharam for his penance.