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Every year, as the lamps come out and the house fills with the smell of sweets, children ask the same big question: why do we celebrate Diwali? The answer is a wonderful one, because Diwali is not just one story. It is a whole bundle of stories, from Lord Rama coming home to Ayodhya to Goddess Lakshmi rising from the ocean. A good Diwali story for kids turns the festival from lights and crackers into something children understand and remember.
In this guide we have retold five famous Diwali stories in simple English, one for each of the five days of the festival. Each one is short enough to read aloud before bedtime and ends with a lesson to talk about together. At the end you will find easy ways to share the festival with little ones and the best books to give as a Diwali gift.
What is Diwali?
Diwali, also called Deepavali, means a row of lamps. It is the festival of lights, celebrated all over India and by Indian families around the world. It falls on the new moon night of the month of Kartik, usually in October or November, which is the darkest night of the month. That is exactly why we light lamps: to fill the darkest night with light.
So if your child asks why we celebrate Diwali, the simplest answer is this: we celebrate Diwali to welcome Lord Rama home, to pray to Goddess Lakshmi and to remember that light always wins over darkness.
At its heart, the story of Diwali is about light winning over darkness, good winning over evil and knowledge winning over ignorance. Families clean and decorate their homes, draw rangoli at the door, wear new clothes, share sweets with neighbours and pray to Goddess Lakshmi and Lord Ganesha for a happy and prosperous year.
Diwali is really a five day festival, and each day has its own story. Here is the full Diwali story for kids, day by day, told simply for young listeners.
5 Diwali stories for kids
Read these stories slowly and with feeling. Let your child light a diya, or switch off the lights and use a torch, while you read. Children love to hear a story in the same glow the story is about.
1. Dhanteras: Lakshmi Rises from the Ocean of Milk
Long, long ago, the gods and the demons wanted the nectar of immortality, called amrit. It was hidden deep inside the great Ocean of Milk. To find it they had to churn the ocean, just as we churn milk to make butter. They used the huge mountain Mandara as the churning stick and the great serpent Vasuki as the rope. The gods pulled one end, the demons pulled the other, and the ocean began to swirl.
As they churned, wonderful treasures rose from the waves: a wish fulfilling cow, a white elephant, a shining jewel and a magical tree. Then came the most beautiful sight of all. Seated on a pink lotus, glowing like the morning sun, Goddess Lakshmi rose from the ocean, holding lotus flowers and pouring out gold. She chose Lord Vishnu as her husband, and ever since she has been the goddess of wealth, good fortune and happiness. Last of all came Dhanvantari, the doctor of the gods, carrying the pot of amrit.
That is why the first day of Diwali, Dhanteras, is a day to welcome Lakshmi. Families clean their homes until they shine, because Lakshmi visits only clean and happy homes, and many buy something new, often a small pot or a coin.
Lesson: Good things come to those who work together and keep going. Ask your child: Why do you think we clean the house before Diwali?
2. Naraka Chaturdashi: Krishna and the Demon Narakasura
There once was a cruel demon king named Narakasura. He was so strong that no one could stop him. He stole the earrings of the mother of the gods, captured sixteen thousand princesses and locked them in his fortress, and frightened people across the land. The gods went to Lord Krishna for help.
Krishna rode out on his eagle Garuda, with his brave wife Satyabhama beside him. The fortress was protected by walls of fire, water and wind, and by sharp traps all around. One by one, Krishna broke through every wall. Then came the great battle. Narakasura fought fiercely, but in the end he was defeated. As he lay dying, he felt sorry for all the harm he had done, and he asked for one wish: that people would celebrate the day of his defeat with lights and joy, so that everyone would remember that evil never wins for long.
Krishna granted the wish. That is why, on the day before the main Diwali night, many families wake up before sunrise, take a special oil bath and light lamps. In South India this day is the main Deepavali celebration.
Lesson: It is never too late to say sorry and choose the right path. Ask your child: What do you think Narakasura learned at the end?
3. Diwali Night: Lord Rama Comes Home to Ayodhya
This is the most famous Diwali story for kids of all. Prince Rama of Ayodhya was sent away to live in the forest for fourteen years, and his wife Sita and his loyal brother Lakshmana went with him. In the forest, the ten headed demon king Ravana kidnapped Sita and carried her away to his island kingdom of Lanka.
With the help of the brave monkey hero Hanuman and a great army of monkeys and bears, Rama built a bridge of floating stones across the sea to Lanka. A mighty battle followed, and at last Rama defeated Ravana and rescued Sita. We celebrate that victory on Dussehra.
When the fourteen years were finally over, Rama, Sita and Lakshmana set off for home. It was the dark new moon night when they reached Ayodhya, and the people did not want their beloved prince to walk home in the dark. So every family lit rows and rows of little clay lamps, called diyas, along the roads, on rooftops and at every doorway. The whole city glowed like a sky full of stars. People sang, danced and shared sweets, and Rama was crowned king.
Every Diwali we light our own diyas, just as the people of Ayodhya did, to welcome goodness home. For the full adventure, read our Ramayana story for kids in seven short parts.
Lesson: Keep your promises and be patient, and good times will come. Ask your child: How do you think Rama felt when he saw all the lamps?
4. Govardhan Puja: Little Krishna Lifts a Mountain
The day after Diwali is Govardhan Puja, and its story is about Krishna as a little boy in the village of Gokul. Every year the villagers held a big prayer for Indra, the king of the gods and the lord of rain. One year young Krishna asked, "Why do we pray to Indra? It is Govardhan Hill that gives our cows grass and our village water. Let us thank the hill instead."
The villagers agreed, but Indra was furious. He sent black clouds and a terrible storm. Rain poured down for days and the village began to flood. The frightened people and their cows ran to Krishna. Calmly, the little boy walked up to Govardhan Hill and lifted the whole mountain on the tip of his little finger, holding it up like a giant umbrella. Everyone sheltered under it, warm and dry, for seven days and seven nights.
At last Indra understood that Krishna was no ordinary child. He stopped the rain and bowed before him. To remember that day, families make a small hill of food called Annakut, a mountain of sweets and dishes offered with thanks. You will find more tales like this in our Krishna stories for kids.
Lesson: Be thankful for nature, and do not let pride make you unkind. Ask your child: What in nature are you thankful for?
5. Bhai Dooj: Yamuna and Her Brother Yama
The last day of Diwali celebrates brothers and sisters. Long ago, Yama, the lord of death, was so busy that he had not seen his twin sister Yamuna for many years. Yamuna missed him and kept inviting him to visit, but he never found the time.
At last, on the second day after the new moon, Yama came to her door. Yamuna was overjoyed. She put a tilak on his forehead, did an aarti, garlanded him and cooked all his favourite dishes. Yama was so touched by her love that he told her to ask for any gift she wanted. Yamuna said, "Only this: come and visit me on this day every year, and let every brother who visits his sister on this day be blessed with a long and happy life."
Yama happily agreed. That is why on Bhai Dooj sisters put a tilak on their brothers and pray for them, and brothers bring gifts for their sisters.
Lesson: The people we love matter more than being busy. Ask your child: Who in your family would you like to spend more time with?
Diwali for every family
Diwali is special for many communities in India, each with its own story. For Jains, Diwali marks the day Lord Mahavira attained nirvana, and lamps are lit as a symbol of his light of knowledge. For Sikhs, the same day is Bandi Chhor Divas, when Guru Hargobind Ji was freed from prison along with 52 kings, and the Golden Temple in Amritsar is lit up with lamps. In Bengal and eastern India, the night is celebrated as Kali Puja. Telling children about these stories too teaches them that the festival of lights belongs to everyone.
How to tell the Diwali story to young children
- Start with the lamps. For children of three or four, keep it simple: Rama came home, it was dark, so everyone lit lamps to show him the way. Then light a diya together.
- One story a day. Read one Diwali story for kids on each day of the festival, so the meaning of each day sinks in.
- Use pictures. Picture books and board books with big, bright pages help little ones follow the story and remember the characters.
- Make it hands on. Draw a rangoli of Lakshmi's lotus, build a Govardhan hill from clay, or make a paper crown for King Rama.
- Talk about the meaning. Ask what darkness and light might stand for. Children often surprise us with their answers about kindness, honesty and courage.
- Keep it safe. Teach children to stay away from open flames and crackers without an adult, and talk about why a quiet, clean Diwali is kinder to animals and the air.
Best Diwali books for kids
Books make a lovely Diwali gift: they last long after the sweets are gone, and they bring the festival stories back every year. Here are our picks to buy books online for the festive season.
Ready made Diwali gift sets
- Diwali Gift Set for Kids (Set of 5): shaped board books of Ram, Lakshmi, Ganesha, Hanuman and Krishna, the gods of the festival in one gift box for little ones.
- Diwali Story Gift Set for Kids (Set of 4): Adventures of Rama, the Goddess Lakshmi and Lord Ganesha board books and 108 Illustrated Ramayana Stories, perfect for the Lakshmi Ganesh puja.
For toddlers and preschoolers (2 to 5 years)
- My First Shaped Board Book: Lord Ram: a sturdy, chunky board book that introduces Rama to the littlest readers.
- My First Shaped Board Book: Goddess Laxmi: perfect for Lakshmi Puja, with bright pictures little hands can hold.
- Mythology Shaped Books, Pack of 5: a gift set of shaped board books on Indian gods and goddesses.
For early readers (5 to 8 years)
- Tales from Adventures of Rama for Children: the story of Rama, from Ayodhya to Lanka and home again, in short illustrated chapters.
- 108 Illustrated Ramayana Stories (5 Minutes Read Aloud): one short story a night, ideal for the whole festive season.
- Tales from Indian Mythology Combo: Krishna, Ganesha, Hanuman, Rama and Shiva together, a ready made Diwali gift.
- Children's First Mythology Stories, Pack of 5: Ram, Shiva, Hanuman, Ganesha and Vishnu in simple words.
In Hindi
- Rama: Illustrated Story Book for Children in Hindi: the Diwali hero in easy Hindi.
- Pauranik Kahaniyan Combo (Hindi): five mythology story books in Hindi for young readers.
For older children (9 years and up)
- Illustrated Ramayana for Children (Deluxe Edition): the complete epic, beautifully illustrated, a gift to keep for years.
Children who love these tales also enjoy our Ganesha stories for kids, perfect for Lakshmi Ganesh puja, and our Mahabharata stories for kids. You can also browse all our story books for kids.
Frequently asked questions
Why do we celebrate Diwali, in short? We celebrate Diwali because Lord Rama returned home to Ayodhya after fourteen years and after defeating Ravana, and the people lit lamps to welcome him. Diwali is also the day to worship Goddess Lakshmi for wealth and happiness, and it stands for the victory of light over darkness.
What are the five days of Diwali? Dhanteras, Naraka Chaturdashi (Choti Diwali), Lakshmi Puja (the main Diwali night), Govardhan Puja and Bhai Dooj.
Which Diwali story is best for small kids? The story of Rama coming home to Ayodhya is the easiest and best loved, because children can connect it straight to the lamps they light at home.
Why do we worship Lakshmi and Ganesha on Diwali? Lakshmi is the goddess of wealth and good fortune, and Ganesha is the remover of obstacles who is worshipped first at every new beginning. Together they are prayed to for a happy and successful new year.
What is a good Diwali gift for children? Story books about the festival and Indian mythology make a thoughtful gift. You can buy books online at BooksFactory with cash on delivery.
Light a lamp, tell a story
This year, light a diya with your child and share one Diwali story for kids each evening of the festival. Watch Lakshmi rise from the ocean, cheer as Krishna lifts the mountain and imagine Ayodhya glowing with a thousand lamps. These Diwali stories are how the true light of the festival passes from one generation to the next. Happy Diwali and happy reading.
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