The most widely held belief is that Holi marks the day when the devotee of Lord Vishnu, Bakht Prahlad, seated on the lap of demoness Holika, was saved from the effect of the fire by God and the demoness got burnt instead. Other stories relate to the death of demon Putana at the hands of lord Krishna and to the burning of demoness Hoda by children.

On this day, Holika is burnt in keeping with the legend of Prahlad and his devotion to Lord Vishnu. In the evening, the crossroads of the streets are lit with huge bonfires. Usually, this is a community celebration and people gather near the fire to fill the air with folk strains and dances. Sheaves of green gram and wheat are roasted in the bonfire and eaten.

The actual festival of Holi takes place the day after this. People gather on the streets and a riot of color takes over. Colored powders called 'gulal' are thrown into the air and smeared on faces and bodies. 'Pichkaris' are filled with colored water and this is spurted onto people. Water balloons are thrown at friends and neighbors in the spirit of fun. Sometimes, mud baths are prepared and people are 'dunked' into this amidst much laughter and teasing.