Kothi served as a vital rest stop for travelers and traders traversing the challenging Rohtang Pass for centuries. Before the development of the modern highway, the journey was arduous, and Kothi provided a much-needed respite. The village's name, 'Kothi,' translates to 'stable' or 'resting place,' reflecting its historical significance as a stopover point. With the construction of the Hindustan-Tibet road, Kothi's importance grew, and it transformed into a popular tourist destination. Today, it retains its historical charm while offering modern amenities for visitors.