`Eid al-Fitr is the Festival fast breaking; it follows after the end of the month long fasting of Ramadan. It has been instituted as an occasion to express thanks to Allah for our achievement in Ramadan and to express joy.
As a religion of moderation, Islam does not ignore the need of humans to express joy and celebrate festive occasions. The `Eid festivals are occasions to recuperate and relax. They are a time to get away from the stresses of daily life, for families to get together, and for the community to come together. A nation’s holidays and feasts are tied to its sacred history and world outlook, and Islamic feasts are no exception; they reflect the Islamic worldview and vision of the Ummah.
There are two basic celebrations in Islam, and each one is connected with a religious event.
The first is `Eid al-Fitr, which is connected with fasting. It is a celebration of the victory one has achieved in mastering and subduing the carnal soul by the successful completion of fasting.
The second feast is `Eid al-Adhha, which coincides with Hajj and is intended to commemorate the faith and sacrifice of Prophet Ibrahim (Abraham), known as the Friend of Allah and the Father of Prophets.
The two days of `Eid in Islam replace all of the ancient feasts associated with pagan traditions. The Prophet (peace be upon him) said, “Through these two fasts (i.e., `Eid al-Fitr and `Eid al-Adhha), Allah has replaced the pagan festivals with that which is better” (Abu Dawud on the authority of Anas ibn Malik).
Almighty Allah knows best.