It is situated at a distance of 24 km from Dhenkanal. It is famous for Chandrashekar Shiva Temple which is situated on a hillock. The captivating natural scenery attracts the visitors. A flight of 1,351 steps and also a ghat road lead to the temple. Thousands of devout souls throng to Kapilas on the occasion of ‘Mahasivaratri’, the night consecrated to Lord Shiva in the month of February-March. To the east of the main temple at a higher altitude stands the temple of Narayan and Viswanath. The hill has several caves as well as the ruins of a medieval fort which are regularly visited by pilgrims. Some of the caves are associated with the Pauranic episodes that have great appeal to the visitors.

During Sivaratri, a mela is organized at Kapilas every year for pilgrims.
Another temple like, Viswanath Temple and Narayana Temple is also famous there. Lots of tourists and devotees come to worship Lord Shiva and Lord Vishnu. You can enjoy the picturesque view of the forest along with the flow of the natural stream that runs through it.