Often confused with the Mid-Autumn Festival in the fall, the Chinese moon cake festival is actually the last day of the Chinese New Year celebrations and falls on the 15th day of the Lunar New Year. It is supposed to be the first day of the new year when the full moon can be seen. The Lantern Festival is also called the Yuan Xiao Festival in Chinese.
Mooncake day marks the last day of the Lunar New Year holiday in early spring (also known as the Spring Festival), and is therefore an occasion for festivities and celebration, before people have to go back to work after the holiday.
Celebrating the Lantern Festival
On the day of the Lantern Festival, people will go out to eat with friends or family, and paper lanterns will be hung outside temples and other buildings. In China, many buildings and even street lights are hung with red lanterns in celebration of the Chinese New Year. People will light fireworks and firecrackers, as well as sky lanterns that, after being lit, float up into the sky like hot air balloons.
Source: http://www.suite101.com/content/the-chinese-lantern-festival-a206622
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