Nashik is said to be associated with Lord Rama, as he is believed to have stayed in the nearby area of Panchvati for over 12 years. The locals dedication to the lord is quite evident in the way they celebrate any and all festivals that are centered around him. Diwali, which celebrates the homecoming of Lord Rama, is therefore observed with much fanfare in Nashik.

Lakshmi Poojan is observed at night, during which businessmen all over town hold pujas at prominent temples and at their shops, seeking blessings from the goddess of wealth, and inviting her to enter their homes and places of business. Cows are also worshipped on this day, �and are adorned with flowers and vermillion and offered fruits and leaves.

People burst crackers and decorate their homes with colourful lanterns and diyas. Offices and schools shut down as relatives pour in from all over the country to spend the festival of lights with their loved ones. Snacks and sweets are prepared by the kilo, as gifts exchange hands in a flurry of excitement and joy.

The whole city seems to radiate warmth and tidings of goodwill, with every street and home decked up in lights and flowers, and colourful rangolis welcoming Lord Rama after his victory over Ravana.