The Lantern Festival falls on 15th of the first moon. People will celebrate with the traditional Chinese New Year festival. Traditionally speaking, the New Year Festival begins at the New Year's Eve, and ends on the Lantern Festival.

The Lantern Festival is also called " Shang Yuan" or "Yuan Xiao" ( literally " the night of the first full moon" ). The name of this festival is in fact derived from a Tang dynasty ( 618-907 B.C.) custom of hanging out the lanterns on the night of the festival. Today, Taiwanese people have a large celebration for Lantern Festival.

Except the traditional hanging out the lanterns, in Taiwan, there are still other celebrations such as the fireworks display, and release the sky lanterns.

During the Lantern Festival, every household consumes sweet-tasting gultinous rice flour balls called Yuanxiao. It is a famous dish in Lantern Festival.