Holika Dahan
Holika Dahan also Kamudu pyre is celebrated by burning Holika, the devil. For many traditions in Hinduism, Holi celebrates the death of Holika in order to save Prahlad, and thus Holi gets its name. In olden days, people use to contribute a piece of wood or two for Holika bonfire.
Significance
The night before Holi, pyres are burnt in North India, Nepal and parts of South India in keeping with this tradition. The youth playfully steal all sorts of things and put them in Holika pyre.
It should also be noted that in some parts of India the day is actually called Holika . There are other activities associated with the story of Prahlad, but the burning of Holika is the one that we can most directly associate with Holi. Fire burnt on the eve of Holi (Holika Dahan) symbolizes the burning of Holika. The story as a whole is testament to the power of devotion (bhakta) over the evil represented by King Hiranyakashyapu, as Prahlad never lost his faith.
The Ritual
Days before the festival people start gathering wood and combustible materials for the bonfire in parks, community centers, near temples and other open spaces. On top of the pyre is an effigy to signify Holika who tricked Prahalad into the fire. Inside homes, people stock up on color pigments, food, party drinks and festive seasonal foods such as gujiya, mathri, malpuas and other regional delicacies.