The most colorful festivals in Chile are religious.
Christmas in Chile is in the summer, but it is also still on December 25. On Christmas Eve the Chileans attend a midnight mass and they also have a special holiday dinner. But instead of having turkey, they have lobster from the Juan Fernadez islands. An alcoholic beverage called monkey's tail is traditionally made during the Christmas season. Christmas season is more a religious holiday than a commercial one. In about the middle of December, many of the religious families set up pictures of Joseph, Mary, the Christ Child, and the cow, while others have all of that, the three wise men, angles, and many more. In the richer families, the materials are usually made from the finest materials, and passed down from generation to generation. And for the poorer families they would probably have pictures made by cardboard, but the Christ figure is often made from porcelain.
A religious tradition that is unique to Chile is upheld in villages throughout central Chile on the Sunday after Easter. This festival is usually celebrated with a great fanfare: they decorate there houses, and all the members of the procession wear costumes and have a parade through the village on horses holding peanuts and images of Christ. The horsemen put on there finest dress clothes and drape themselves with beautiful capes that resemble those worn by the horses of knights in the middle ages.
Those were some of the famous traditions that the people in Chile celebrate. The most common tradition is Christmas.