The festival starts with Dhanteras on which most Indian business communities begin their financial year.

The second day of the festival, Naraka Chaturdasi, marks the vanquishing of the demon Naraka by Lord Krishna and his wife Satyabhama.

Amavasya, the third day of Deepawali, marks the worship of Lakshmi, the goddess of wealth in her most benevolent mood, fulfilling the wishes of her devotees. Amavasya also tells the story of Lord Vishnu, who in his dwarf incarnation vanquished the Bali, and banished him to Patala.

It is on the fourth day of Deepawali, Kartika Shudda Padyami, that Bali went to patala and took the reins of his new kingdom in there. The fifth day is referred to as Yama Dvitiya (also called Bhai Dooj), and on this day sisters invite their brothers to their homes.