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The Festival of Lanterns is the finale of the Chinese New Year celebrations. It takes place on the fifteenth day of the New Year. Everywhere in China and in Chinese communities the world over (including homes, any business premises which are open, even the streets) is decorated with lanterns of all sizes. The lanterns are usually red, because red is considered to be lucky, and may be decorated with traditional scenes. On the day of the Festival of Lanterns there is much music and dancing in the streets.
Lantern making is a tradition going back many centuries which children still continue. In many places the children have their own parade through the streets at night to show the lanterns they have made.
If you're looking for a way to commemorate this event, you might be interested in this article: Commemorations with Cross Stitch
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