According to Ramayana, Diwali commemorates the return of Ram, an incarnation of Lord Vishnu and the eldest son of King Dasharath of Ayodhya, from his 14-year exile with Sita and Lakshman after killing the Ravan, a demon king. The people of Ayodhya illuminated the kingdom with earthen diyas (oil lamps) and fireworks to celebration of the return of their king. The legend of Rama says, Lord Rama was the seventh incarnation of Lord Vishnu. He was a great warrior King. His father Dashratha, the King of Ayodhya sent him to exile along with his wife Sita and his younger brother Lakshman, on his wife's insistence. After 14 years of exile, in which he put an end to the demon Ravana Lord Rama returned to his Kingdom Ayodhya.
Ravana imprisoned Sita and forced her to marry him but she never
agreed to this. Lord Rama with the help of Hanuman, Sugreev and Bali
and their "vannar sena" attacked Lanka and after a
fierce battle, got Sitaji released from the clutches of Ravana.
After this victory of Good over Evil, Rama returned to Ayodhya.
According to Diwali legends in Ayodhya, the people welcomed them by
lighting rows of clay lamps. Twinkling oil lamps or diyas were there
in every home and firework were there too. Great celebrations were
held and everyone was happy for Rama to be the King of Ayodhya. This
celebration took place on the night of the new moon of Ashwin
(October-November). The tradition and the timing continued to be
followed even these days. Even today Diwali celebration means
-happiness, fireworks and sweets.
Thus the festival of diwali is an honour of Rama's victory over
Ravana. Among all the legends of Diwali this one is the most
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There are a lot of legends related to deevapali in India. History of Diwali says it is clebrated as an honour to the victory of Rama.