The establishment of Chalouni as a tea garden dates back to the year 1885.

Legend has it that the garden derives its name from a particular variety of tree called "Chilloune" which at a point of time was spread all over the land where currently the garden exists.

Located 1500 feet above mean sea level and at the lap of the lower Sub-Himalayan range, Chalouni is scenically resplendent. To its north lies the Kalimpong Sub-Division reserve forest. The hills rise above into a chain of mountain ranges adding to the beauty of the garden. There are a number of rain-fed streamlets flowing north-south, which lace its body meandering and dancing to produce a musical symphony to add to its sylvan beauty and charm.