Dhenkanal town itself can be seen in an afternoon — the old palace, Hanuman Hill, and the riverside ghats. The reason to stay overnight is the surrounding district: the Kapilash Shiva temple on a forested hilltop, the Satkosia gorge of the Mahanadi, the lost-wax dhokra metal-casting villages, and the Joranda Mahima monastery, headquarters of the Mahima Dharma sect.
Most visitors arrive on a side trip from Bhubaneswar or Cuttack — but the place is rewarding precisely because it is overlooked. Bring transport: distances between the main sights are large and the local bus network is sparse.