The Ghost Festival (Zhongyuan Jie) is a traditional Chinese holiday and Taoist festival celebrated on the 15th night of the seventh lunar month. The 15th day of the seventh lunar month is called Ghost Day, and entire month is known as Ghost Month.
Day Of The Dead, Halloween, Ullambana & The Ghost Festival
The Chinese Ghost Festival has similarities to what we in the United States call Halloween and is sometimes called Chinese Halloween. Its also similar to the Mexican Day of the Dead and is sometimes called the "All Souls Festival." For Chinese Buddhists, it is known as Ullambana, or the Hungry Ghost Festival.
Honoring & Communicating With The Ancestors
At the time of the Ghost Festival, the lines of communication between the three realms of Heaven, Hell and the Earthly realm of the living are more open than at other times. Because of this, its easier to communicate, and rituals of honoring and healing are more effective and powerful.
On Tomb Sweeping Day (Qingming Jie), the living pay homage to their deceased ancestors. In the Ghost Festival (Zhongyuan Jie ) the roles are reversed: the ghosts and spirits pay visits to the living - are the honored guests.
Ghost Festival Offerings To The Ancestors
Offerings made during the Ghost Festival are similar to those of Tomb Sweeping Day, and include: incense, joss paper (spirit Money or Ghost Money), prepared food, wine and tea, as well as gold and other valuables. While for the Tomb Sweeping Festival these offerings are made at the graves of the ancestors, for the Ghost Festival they are offered in the homes of the living, in the context of elaborate feasts. Traditionally, empty seats are left at the family table, as though the deceased ancestors were actually going to be attending the feast prepared in their honor. In this way, the living and the dead are able to sit down together, and share in a meal.
Paper Boats & Lanterns To Guide The Ancestors
Another ritual associated with the Ghost Festival is the purchase or creation of miniature paper boats or lanterns. These are released on lakes or rivers, as a way of giving direction to the ancestors. They are the ritual equivalent -- for the souls of the ancestors -- to a lighthouse for a passing boat.

