The Gudahandi hills are situated in the vicinity of Khaligarh, a tiny village close to the Koraput district boarder, about 17.6 km North-East of Ampani. Ampani is 77 km from Bhawanipatna on the road towards Nabarangpur. In the Gudahandi hills, some ancient caves bearing pictographic paintings of remote antiquityare available.

Three small hills, all of curved length, are together known as the Gudahandi hills. The North and the South hills join each other in the East leaving a courtyard like valley in between which is open towards the West. This valley is paved by a huge block of stone slopping down to the East. Just at the foot of these hills, facing the valley, are rows of caves. Except one in the North, all the caves are small in size. They generally appear to have been formed by nature itself in red slate stone. Pictographic paintings in Red and Black colours appear at the entrances of some of caves in the Southern row. These are not yet been studied but, it is generally surmised that they bear approximately to the picture scripts of the Indus Valley Civilisation. Besides Gudahandi in Kalahandi district, Bikramkhol and Ulapgarh in Sambalpur District and Naraj in Cuttack District also possess some writings resembling pictographic paintings, a fact indicative of pre-historic man’s habitation in Odisha.

The third hill extending North to South stands like a way to the immediate West of the valley. But as this hill does not join with the other two, the valley is approachable from the North as well as from the South by a narrow pass. All the three hills taken together have the appearance of a pot with a lid on. The name Gudahandi means, a pot, for molasses.

A rivulet named Behera flows past the village. There are remains of a very old dam across this rivulet. Local people call it the work of Bhima, the second of the Pandavas.