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The Himalayas are a region of geomagnetic importance, as they impact the geomagnetic field of Earth and space weather, as it is one of the largest mountain belts in the world. Due to its huge mass, it may influence the dynamics of the Earth’s core, the primary source of the geomagnetic field. In Indian longitudes, the mean location of the solar quiet (Sq) focus lies in latitudes closer to the Hanle region. Therefore, monitoring the magnetic field in the Hanle region is important. Ideally, a zero magnetic gradient or low magnetic gradient of the order of a few nT/m or less is preferred; this low gradient helps reduce the effects of local magnetic variations. Hence, to establish a continuous geomagnetic observation setup, a magnetic survey was conducted at Hanle, Ladakh, to identify the location of the low magnetic gradient. From the magnetic survey, the eastern part of the selected hillock was identified that has the least magnetic gradient. After checking other logistics, the chosen site is suitable for setting magnetic field observations. The proposed magnetic observatory at Hanle will be useful for studies related to unusual space weather phenomena, such as the citing of Auroras (of 22–23 April 2023 and 10–11 May 2024) in the Ladakh region, geomagnetic field monitoring in low-mid transitional regions, or magnetic exploration.