Kundal Shahi is a village that is located in the Neelam valley, at an elevation of approximately 1,350 meters above sea level, at the point where the Jagran Nallah joins the Neelam River. The distance from Muzaffarabad, the capital of Azad Jammu and Kashmir, to Kundal Shahi is some 74 kilometers by road. The Line of Control (LoC), which separates the Indian-administered part of Kashmir from the Pakistani-administered part, runs through, or close to, the Neelam valley, at some points right along the river and at other points across the mountains on the left side of the river. At Kundal Shahi, the LoC is removed by a few kilometers from the bank of the Neelam River. This makes Kundal Shahi a relatively safe place as far as cross-border shelling is concerned, and for this reason the tehsil headquarters, formerly in Authmuqam 10 kilometers up the valley, have been shifted in recent years to Kundal Shahi.
Kundal Shahi, also a small commercial centre and being the commericial centre of the area it is congested and over crowded .Kundal Shahi is also operational centre of the Azad Kashmir. Kundal Shahi station has a rest house manned by the logging and saw mills at the Western bank of river Neelum adjacent to metalled road. From this place a visit can be planned to the loveliest part of the Neelum Valley, commonly known as Jagran Valley