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Holi or Fagu Purnima is one of the most colorful and playful festivals of Nepal. Fagu Purnima is the festival of water and colors, where Fagu means 'sacred red powder' and Purnima stand for full moon day. The festival is celebrated for as long as a week. It starts from the day when the chir pole (a bamboo pole) decorated with colorful flags erect at Kathmandu Durbar Square.

The holi is named after the mythical demon called 'Holika'. The myth on Holi is the demon 'Holika' and her brother, an atheist king Hiranyakashyap conspired to kill his own son 'Pralhad' because he was an ardent devotee of Lord Vishnu. Once Holika jumped into the fire with Pralhad to kill the latter. But Brahma's blessings could only be used for good purposes and so Holika was consumed by fire while Pralhad was saved by the grace of the gods. Thus, Holi is said to be rejoiced of extermination of demon Holika.

During the first six days of Fagu Punima, people just play by throwing water balloons (lolaas) on passer by. But on the last day i.e. on Fagu Purnima, all the members of families and friends gather at one place and celebrate the occasion with throwing colors and water balloons to each other. Wild youngster, covered with various colors on their face and body can be seen on street wandering either on foot or on vehicles. The people from Terai region and Marwari (origin from India) society celebrate Holi a day later.