Why Diwali is Celebrated: Mythological Stories, Religious Significance, and History

Discover why Diwali is celebrated in India. Learn about the mythological stories, historical beliefs, and significance of Goddess Lakshmi, Lord Rama, and more.

By Preeti SoniOct 19, 2025
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Why Diwali is Celebrated: Mythological Stories, Religious Significance, and History

Many festivals are celebrated in India, some of which hold special significance in Indian history. Among all these religious festivals celebrated in India, Dussehra and Diwali top the list.

Diwali is considered the most significant festival in Hinduism. It falls exactly 20 days after Dussehra. Diwali is a festival celebrated in India where people decorate their homes with burning lamps and celebrate with firecrackers.

In this article, we will provide detailed information about why Diwali is celebrated. We will also learn about the mythological beliefs behind the festival. So, let's find out why Diwali is celebrated.

Why Diwali is Celebrated

There are many mythological stories behind the celebration of Diwali. However, we will tell you about some of the most important ones. Diwali is celebrated by following these specific mythological beliefs, as described below. On the festival of Diwali, people worship Goddess Lakshmi and Ganesha, the remover of obstacles. So, let's explore the special reasons behind celebrating Diwali:

1) The Killing of Ravana and Lord Rama's Return to Ayodhya

After killing Ravana, Lord Rama returned to Ayodhya after 14 years of exile. Exactly 20 days after Ravana's slaying, Lord Rama returned to his birthplace, Ayodhya. Therefore, the people of Ayodhya welcomed Rama by lighting ghee lamps upon his return, and the festival of Diwali has been celebrated ever since.

2) The Birth of Goddess Lakshmi

Mata Lakshmi was born on Diwali. According to Hindu religion and scriptures, it is said that Goddess Lakshmi is the goddess of wealth. It is also said that Goddess Lakshmi was born on the new moon day of the month of Kartika during the churning of the ocean. Since then, the festival of Diwali is celebrated to commemorate the birth of Goddess Lakshmi, and this is why Goddess Lakshmi is worshipped on Diwali.

3) Lord Vishnu Rescued Goddess Lakshmi

Born during the churning of the ocean, Goddess Lakshmi was imprisoned by the demon king Bali. To free her from Bali's captivity, Lord Vishnu took his fifth incarnation, known as the Vamana incarnation of Lord Vishnu.
On the day of Kartik Amavasya, Vamana freed Goddess Lakshmi from the captivity of King Bali, and for this reason, Goddess Lakshmi is worshipped on Diwali.

4) Lord Krishna Killed Narakasura

According to Indian beliefs, it is said that Lord Krishna, the son of Devaki, killed the demon Narakasura a day before Diwali, which is why this festival is celebrated a day before Diwali.

5) King Vikramaditya's Coronation

King Vikramaditya is still considered an ideal king; he was a great emperor of ancient India. Vikramaditya was known for his generosity, courage, and protection of scholars. It is said that Vikramaditya's coronation took place on the new moon day of the month of Kartik.

6) According to Jainism

According to Jains, Rishabhdev, the revered and founder of modern Jainism, attained nirvana on Diwali, and this is why Jains celebrate this day with special fervor.

7) According to Sikhism

Diwali is also significant for Sikhism. The story behind this is that the Mughal emperor imprisoned Guru Hargobind Singh Ji, the sixth Sikh Guru. It is said that a fakir appeared to the emperor in a dream asking him to release the Guru, after which the Mughal emperor freed him. The Sikh community celebrates this festival to celebrate his freedom.

8) Celebrating the Pandavas' return to their kingdom

There is a story in the Mahabharata that, with the help of a trick by uncle Shakuni, the Kauravas defeated the Pandavas in a game of chess, forcing the Pandavas into exile for 13 years.

It is said that on the new moon day of the month of Kartik, the five Pandavas returned to their kingdom after completing their exile. The people of the kingdom welcomed them by lighting lamps.

9) Festival of the Harvest

Diwali is a major festival for farmers. Diwali coincides with the full harvest time of the Kharif crop. Farmers consider this festival a symbol of their prosperity, and therefore, they celebrate Diwali with great enthusiasm.

10) Goddess Shakti assumed the form of Mahakali

Seeing the growing terror of the demons, Mother Shakti assumed the form of Mahakali to destroy them. This manifestation of hers caused turmoil throughout the world, and Mahakali's anger remained unabated.

So, Lord Shiva lay down before her, and with just a touch of his body, Mahakali's anger subsided. For this reason, the festival of Diwali is celebrated by peacefully worshipping Goddess Lakshmi. On this same night, Kali, the fierce form of Goddess Shakti, is also worshipped.

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