The Nala Palkhu originates near the town of Saidpur in Bajwat area from the Tawi River, the major left bank tributary of the Chenab River. In addition, many small streams in the foothills of the Great Himalayas join to form a main stream, the Nala Aik, in the south of Jammu and south-east of Sialkot regions. Another stream from the Nala Aik joins the Palkhu in Indian territory before the Pakistani border. Then the Nala Palkhu flows parallel to the Chenab River, passing north of two important cities of Punjab, Pakistan, Sialkot and Wazirabad. About one kilometer east of Wazirabad, the Nala Aik and Palkhu join near the locally famous Lado Ki Pulli, a small bridge on the Aik. Downstream of the joining point, this stream is called Nala Palkhu and it forms the northern boundary of the city of Wazirabad. The Nala Palkhu crosses the Grand Trunk Road at the northern edge of Wazirabad and then flows parallel to the Chenab River until it empties into the Chenab at Head Khanki.