There are countless local festivals (祭り, matsuri) in Japan each year. They are all spectacular, extravagant, and fun but also unique. Each celebration is based around an individual shrine which pays tribute to a different deity or a famous historical event.
The celebrations vary greatly as each has features based upon the specific shrine but hey also have many similarities. Almost all of them involve energetic processions where thousands of people dance, chant, and dress up in special clothes.