Anandpur Sahib comes to life every year on the occasion of Hola Mohalla.  This tradition dates back to the times of the 10th Guru, Sri Guru Gobind Singh.. The Guru decreed that the occasion of the festival of Holi be the occasion for the display of the martial spirit of his people and he gave this festival of Holi the Sikh name of 'Hola Mohalla'. Each year Hola Mohalla marks the congregation of up to 100,000 devotees from all over the country for a festival of colour and gaiety.

Hola is the masculine form of the feminine Holi. The word "Mohalla" is derived from the Arabic root hal (alighting, descending) and is a Punjabi word that implies an organized procession in the form of an army column. Together the words "Hola Mohalla" stands for "mock fight".

On this three-day grand festival, mock battles, exhibitions, display of weapons, etc are held followed by Kirtan, music and poetry competitions