Lighting candles and lamps, giving gifts of jewellery - it's all about pumping the soul with spiritual prosperity.
But you don't need to be twirling sparklers in your best silks to join in, just head to Victoria's Parliament, Federation Square or even Sydney's Martin Place to see the shimmering lights set up to welcome Lord Rama back from exile.
Originating in southeast Asia, Diwali is celebrated around the world.
"The light we generate from Diya: it's for enlightening of self. It's removing all the darkness which is very significant, not just in your home but in your hearts as well."
The words Diwali or Deepavali mean 'a row or series of lights' and festivities include decorating public spaces and homes with lights, fireworks displays, cultural activities and the sharing of food and gifts.
The lights have both mythical and spiritual meaning.
Hindus, Jains, and Sikhs celebrate the spiritual victory of good over evil, light over darkness, and knowledge over ignorance.
A Hindu legend traces the first time the lights were used to a story about Lord Rama who is a descendant to the Hindu God Vishnu.
Rama returns to his kingdom in the ancient Indian city of Ayodhaya after 14 years in exile and wins a battle against a demon king.
The story says people lit up their houses to celebrate his victory.
While there are different stories about the festival's origins, even Australians who aren't religious still celebrate Diwali, according to Professor Ian Woolford from La Trobe University.
An Indian artist gives finishing touches to the idols of Goddess Kali, who will be worshipped during Diwali festival. (EPA/DIVYAKANT SOLANKI)
"In Melbourne ... there are many, many people who are not Indian, and who are not Hindu, who celebrate Diwali now. Perhaps to learn about Indian culture, they see it as a wonderful expression of Indian culture and perhaps they also think that the message of Diwali is for all people."
In Nepal the festival is also called Tihar and, along with worshipping Hindu gods and goddesses, animals such as crows, dogs and cows are honoured with gifts of food and adorned with garlands.
Melbourne Diwali Festival organiser Arun Sharma explains the ritual of using lights, also known as Diyas, can be an opportunity to quietly meditate, concentrate on this light and illuminate your soul.
"Diwali does have a massive significance behind it. It's not just for fun, just come and enjoy and walk away with nothing. The light we generate from Diya: it's for enlightening of self. It's removing all the darkness which is very significant, not just in your home but in your hearts as well. So it got a good value, good message behind."
Lights has often been used to represent the struggle to overcome our internal issues.
"It's significant of the victory of truth over evil, over lies. Victory of lights over darkness. This is one thing that it signifies and of course perhaps this is become so popular even among non-Indians. This is the message that all of us can appreciate," says Professor Woolford.
Lights and firecracker displays can also be thought of as an expression of gratitude to the heavens for the attainment of health, wealth, knowledge, peace and prosperity.
In Nepal the festival is also called Tihar and, along with worshipping Hindu gods and goddesses, animals such as crows, dogs and cows are honoured with gifts of food and adorned with garlands.
What to do during Diwali
Day 1: Some traditional activities on the first day of Diwali include spring-cleaning your house, shopping for gold or silver and offering sweets and prayers to the Gods.
Day 2: On the second day, some decorate their homes with clay lamps and create rangolis, which are decorative patterns of coloured powder or sand arranged on the floor.
Day 3: The third day of Diwali is considered the festival's main day, when people gather to worship the Goddess Lakshmi to attain wealth and prosperity.
Day 4: The next day, "Nutan Varsh", is celebrated as New Year's Day in the West Indian state of Gujarat.
Friends and family exchange gifts and sweets and they also create Annakut: mountains of food arranged in large tiers or shapes representing India's Mount Govardhan.
Last year the New South Wales Government sampled food from a four-tier Annakut which was constructed by Gujarati community volunteers.
Day 5: The fifth and the last day of Diwali is called Bhaiduj, where brothers bless their sisters and provide gifts of love.
Much like the story of Father Christmas, some Hindus believe that the goddess of happiness and good fortune, Lakshmi, visits the earth on this last day.
Astrologer Pandit Indu Prakash says if the goddess finds a house that is pure and clean and bright, she will fulfil the wishes of her devotees.
"By adopting certain activities or certain things or doing some certain things it develops an attitude in you which can provide wealth in your life so it is an indication. It's just, it's just a guideline to the society that by doing these things you can invite goddess Lakshmi in your life, which will shower you wealth and prosperity."
