Diwali is a Hindu festival of lights that celebrates the victory of good over evil. It commemorates Lord Rama's defeat of the demon Ravana and return to his kingdom, with people lighting lamps and decorating their homes with lights to symbolize the inner light that overcomes darkness. The document provides details about the story and traditions of Diwali, including decorative patterns on lamps called diyas, buildings decorated with lights, and people gathering to see the lit skies and commemorate the victory of Rama and Sita.