It is in the north east of Mansehra District in the Khyber-Pakhtunkhwa province, Pakistan and feeds water to Kunhar river. At an elevation of 3,224 m (10,578 feet) above sea level, it is well above the tree line, and is one of the highest lakes in Pakistan.
Saiful Muluk was formed by glacial moraines that blocked the water of the stream passing through the valley. The Kaghan Valley was formed in the greater Pleistocene Period dating back almost 300,000 years when the area was covered with ice. Rising temperatures and receding glaciers left a large depression where glaciers once stood. Melting water collected into the lake.
A fairy tale called Saif-ul-Muluk, written by the Sufi poet Mian Muhammad Bakhsh, talks of the lake. It tells the story of the prince of Persia named Shahzada Saif Ul Malook who fell in love with a fairy princess named Shehzadi Badri Jamala at the lake.