What is Diwali, and why is it celebrated? What to know about the annual festival of lights.

This month marks one of Hinduism's most celebrated festivals. Diwali, the annual festival of lights, begins on Nov. 6. Celebrations last five days and include activities such as gift-giving, fireworks and even gambling.

Though known as a Hindu holiday, Diwali is celebrated worldwide by people of many faiths, with celebrations occurring in homes, community centers and public gatherings across the globe. While different people have their own unique lore and customs for Diwali, the celebration universally symbolizes "the victory of good over evil, inner light over spiritual darkness, and knowledge over ignorance," per the Hindu American Foundation .

There are multiple reasons people celebrate Diwali, and they vary by region.

In northern India, Diwali is typically associated with the return of Prince Rama, an incarnation of the deity Vishnu, and his wife, Sita, an incarnation of the goddess Lakshmi, to the ancient city of Ayodhya after 14 years of exile. As the story goes, the people of Ayodhya celebrated the long-awaited return of their king by lighting lamps throughout the city — a tradition people still observe today to commemorate that moment. Diwali is derived from the word "deepavali," which means "a row of lights."

In southern India, however, Diwali commemorates the day Lord Krishna defeated the demon Narakasura. And in the West, it honors the moment Lord Vishnu sent the demon King Bali to rule the netherworld.

Different faiths have also assigned their own meanings to Diwali: for Jains, it honors Lord Mahavira's attainment of nirvana; for Sikhs, it coincides with Bandi Chhor Divas, celebrating Guru Hargobind's release from prison; and for Buddhists, it commemorates Emperor Ashoka's conversion to Buddhism.

No matter which story is associated with Diwali, they all share the common theme of good defeating evil.

Diwali spans five days of celebration, and different regions of India have their own unique traditions to honor the holiday, with more than 1 billion people honoring it globally each year . The third day of Diwali, Sunday, Nov. 8, is considered the most significant.

The holiday is typically honored with shared feasts and parties. Sweets and gifts are exchanged, and fireworks and firecrackers are set off to honor the holiday.

Many people celebrate by lighting rows of clay oil lamps outside their homes to mark the holiday. Many also create rangoli — intricate geometric or floral designs made with colorful powders — to decorate their homes.

Many people gamble during Diwali, as it's believed that those who succeed at gambling will have good luck for the rest of the year.

Is Diwali a federal holiday? What is open and closed for Diwali?

Diwali is not a federal holiday in the U.S. However, it has been recognized by three states as a state holiday. Diwali became a state holiday in Connecticut in October 2024 and in Pennsylvania in June 2025.

In 2025, California Gov. Gavin Newsom signed a law making the celebration a state holiday that was supposed to begin this year. Under the new law , public school students would receive an excused absence to celebrate the holiday, and state employees who celebrate it can take paid time off.

But legal challenges have frozen enforcement of the law for 2026. Newsom's office has appealed the decision, and litigation is ongoing.

Businesses and government buildings are not required to close in states honoring Diwali as a state holiday.

Local authorities have also honored Diwali. In 2023, New York City Mayor Eric Adams made Diwali a public school holiday in the city . The New Jersey Department of Education also allows its students to take time off from school in order to observe Diwali.