Diwali celebrations in Kerala are carried out at a smaller scale as compared to the rest of India. The tradition of celebrating Diwali was never followed among the local Keralites, as it is not part of their culture. This is because Diwali has traditionally been a festival for merchants, and being a communist-ruled state, the Hindus of Kerala have never freely engaged in trade.

But with a cosmopolitan population in most of the cities in Kerala, Diwali is celebrated with great pomp and show in these places. Most of Indian communities residing in Kerala apart from the native population are Tamils, Bengalis and various North Indian communities. Diwali gifts and Diwali sweets are exchanged among these communities. They wear new apparels and visit temples to pay obeisance to goddess Lakshmi and Lord Ganesha. Fireworks, lights, sweets and feasting are also a part of the Diwali celebration in Kerala.

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