Situated on the ancient Silk Route, the town was at the crossroads between the East and West when all trade between China and the Middle East passed through it. The Hunas made it their capital in the 5th century. Because of the cliff of the Buddhas, the ruins of the Monk's caves, Shahr-e Gholghola ('City of Sighs', the ruins of an ancient city destroyed by Genghis Khan during the 1221 siege of Bamiyan), and its local scenery, it is one of the most visited places in Afghanistan. The Shahr-e Zuhak mound ten miles south of the valley is the site of a citadel that guarded the city, and the ruins of an acropolis could be found there as recently as the 1990s.

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