How to celebrate Eid

Praise be to Allah
The days of the two Eids are days of joy and happiness, and these days are singled out for some acts of worship, special practices, and traditions, including the following: 
1.     Doing ghusl:
This is narrated in saheeh reports from some of the Sahaabah.
A man asked ‘Ali (may Allah be pleased with him) about bathing and he said: Bathe every day if you wish. He said: No, (I mean) bathing in the sense of ghusl (as an act of worship). He said: (Do ghusl) on Fridays, the day of ‘Arafah, the Day of Sacrifice (Eid al-Adha) and the day of al-Fitr (Eid al-Fitr).
Narrated by ash-Shaafa‘i in his Musnad (p. 385); classed as saheeh by al-Albaani in Irwa’ al-Ghaleel (1/176).
2.     Wearing new clothes to beautify oneself
‘Abdullah ibn ‘Umar (may Allah be pleased with him) said: ‘Umar (may Allah be pleased with him) found a suit of brocade being offered for sale in the market, so he took it and brought it to the Messenger of Allah (blessings and peace of Allah be upon him) and said: O Messenger of Allah, buy this and adorn yourself with it for ‘Eid and for (meeting) the delegations. The Messenger of Allah (blessings and peace of Allah be upon him) said: “This is only a garment for the one who has no share in the Hereafter.”
Narrated by al-Bukhaari (906) and Muslim (2068).
Al-Bukhaari included this report in a chapter entitled: Chapter on the Two Eids and Beautifying Oneself for them.
Ibn Qudaamah (may Allah have mercy on him) said:
This indicates that beautifying oneself on such occasions was something well known among them.
Al-Mughni (2/370)
Ibn Rajab al-Hanbali (may Allah have mercy on him) said:
This hadith indicates that one should beautify oneself for Eid and that this practice was common among them.
Fath al-Baari by Ibn Rajab (6/67)
Ash-Shawkaani (may Allah have mercy on him) said:
What we may conclude from this hadith is that it is prescribed to beautify oneself for Eid because the Prophet (blessings and peace of Allah be upon him) basically approved of ‘Umar’s idea about beautifying oneself for Eid, and he only objected to the one who would wear such a suit because it was made of silk.
Nayl al-Awtar (3/284)
And this has been the practice of all people from the time of the Sahaabah (may Allah be pleased with them) until the present day.
Ibn Rajab al-Hanbali (may Allah have mercy on him) said:
Al-Bayhaqi narrated with a saheeh isnaad from Naafi‘ that Ibn ‘Umar used to wear his finest clothes on the two Eids.
He also said:
This adorning oneself on the occasion of Eid applies to the one who goes out to the prayer, the one who stays at home, and even women and children.
Fath al-Baari by Ibn Rajab (6/68, 72)
One of the scholars said:
According to some scholars, a person who was in i‘tikaaf may go out for Eid in the clothes he wore for i‘tikaaf, but this is a less-favoured opinion.
Shaykh Ibn ‘Uthaymeen (may Allah have mercy on him) said:
The Sunnah on Eid is to beautify oneself, regardless of whether one has been observing i‘tikaaf or not.
As’ilah wa Ajwibah fi Salaat al-Eid (p. 10)
3.     Putting on the best perfume
It is narrated in a saheeh report from Ibn ‘Umar (may Allah be pleased with him) that he used to put on perfume on the day of al-Fitr, as it says in Ahkaam al-‘Eidayn by al-Firyaabi (p. 83)
Ibn Rajab al-Hanbali (may Allah have mercy on him) said:
Maalik said: I heard the scholars describing it as mustahabb (encouraged) to adorn oneself and put on perfume on every Eid.
That was also regarded as mustahabb by Ibn Rajab (6/68)
This beautifying oneself and putting on perfume is only to be done at home in the case of women, in front of their husbands, fellow women and mahrams.
It says in al-Mawsoo‘ah al-Fiqhiyyah (31/116):
The recommendation to wear good clothes, clean oneself, put on perfume, and remove body hair and offensive odours applies equally to both the one who goes out to the prayer and the one who stays at home, because the day of adornment is for all of them alike. This applies to all except women.
With regard to women, if they go out they should not adorn themselves; rather they should go out in scruffy clothes and not wear beautiful clothes or put on perfume, because of the fear that they may cause temptation. The same applies to old women and women who are not attractive. And they should not mix with men; rather they should be in a separate area from them. End quote.
4.     Takbeer
It is Sunnah to recite takbeer on the occasion of Eid al-Fitr, for the one who sights the moon, because Allah, may He exalted, says (interpretation of the meaning): “(He wants that you) must complete the same number (of days), and that you must magnify Allah (i.e. to say Takbeer (Allahu-Akbar; Allah is the Most Great) on seeing the crescent of the months of Ramadan and Shawwal) for having guided you…” [al-Baqarah 2:185]. Completing the same number of days means completing the fast. Recitation of takbeer ceases when the imam comes out to deliver the khutbah [before the Eid prayer].
On Eid al-Adha, the takbeer begins on the morning of the day of ‘Arafah, until the last of the days of at-Tashreeq, which is the thirteenth of Dhu’l-Hijjah.
5.     Visiting one another
On Eid there is nothing wrong with visiting relatives, neighbours and friends.  This is something that people are accustomed to doing on the Eids, and it was said that this is one of the reasons for changing one’s route when coming back from the Eid prayer place.
Most of the scholars are of the view that it is mustahabb to go to the Eid prayer via one route and come back via a different route.
It was narrated that Jaabir ibn ‘Abdullah (may Allah be pleased with him) said: On the day of Eid, the Prophet (blessings and peace of Allah be upon him) used to come back via a different route.
Narrated by al-Bukhaari (943).
Al-Haafiz Ibn Hajar (may Allah have mercy on him) said concerning the ruling on that:
It was said that the wisdom behind that was so that he might visit his relatives, both living and dead; and it was said that it was in order to uphold ties of kinship.
Fath al-Baari (2/473)
6.     Congratulating one another
This may be done in any permissible wording, the best of which is: “Taqabbal Allahu minna wa minkum (May Allah accept it from us and from you),” because this is what is narrated from the Sahaabah (may Allah be pleased with them).
It was narrated that Jubayr ibn Nufayr said: When the Companions of the Prophet (blessings and peace of Allah be upon him) met one another on the day of Eid, they would say to one another: “Taqabbal Allahu minna wa minkum (May Allah accept it from us and from you).”
al-Haafiz classed its isnaad as hasan in Fath al-Baari (2/517).
Maalik (may Allah have mercy on him) was asked: Is it makrooh for a man to say to his brother, when he has completed the Eid prayer,“Taqabbal Allahu minna wa minka wa ghafar Allahu lana wa laka (May Allah accept it from us and from you; may Allah forgive us and you)” and for his brother to respond in like manner? He said: That is not makrooh.
Al-Muntaqa Sharh al-Muwatta’ (1/322)
Shaykh al-Islam Ibn Taymiyah (may Allah have mercy on him) said:
With regard to congratulating one another on the Day of Eid, saying to one another when they meet after the Eid prayer, “Taqabbal Allahu minna wa minkum (May Allah accept it from us and from you)” or “Ahaalahu Allahu ‘alayka (May Allah cause you to live to see another Eid)” and the like, it was narrated from a number of the Sahaabah that  they used to do that. The imams, such as Ahmad and others, granted concessions allowing that, but Ahmad said: I do not initiate such congratulations with anyone, but if someone congratulates me first, then I respond. That is because returning a greeting is obligatory.
As for initiating the greeting or congratulations (on Eid), that is not a Sunnah that is enjoined, but it is not something that is prohibited either. So whoever does that has a precedent and whoever refrains from doing that also has a precedent.
Majmoo‘ al-Fataawa (24/253)
7.     Enjoying fine food and drink
There is nothing wrong with enjoying fine food and drink, or eating good food, whether that is at home or at a restaurant outside the home, but it is not permissible for that to be in a restaurant in which alcohol is served, or a restaurant in which music is played or in which men can see non-mahram woman.
In some countries it may be better to go for a trip on land or on the water so as to get away from places in which there is free mixing between men and women, or in which there are other things that are contrary to Islamic teaching.
It was narrated that Nubayshah al-Hudhali (may Allah be pleased with him) said: The Messenger of Allah (blessings and peace of Allah be upon him) said: “The days of at-Tashreeq are days of eating, drinking and remembering Allah.” Narrated by Muslim (1141).
8.     Permissible leisure activities
There is nothing wrong with taking the family for a trip on land or on the water, or visiting scenic places, or going to a place where there are permissible leisure activities. There is also nothing wrong with listening to some nasheeds that are free of musical accompaniment.
It was narrated that ‘Aa’ishah (may Allah be pleased with her) said: The Messenger of Allah (blessings and peace of Allah be upon him) came in and there were with me two young girls who were singing the songs of Bu‘aath. He lay down on the bed and turned his face away. Then Abu Bakr came in and rebuked me, saying: Singing of the Shaytaan in the presence of the Messenger of Allah (blessings and peace of Allah be upon him)? The Messenger of Allah (blessings and peace of Allah be upon him) turned to him and said: “Let them be.” When he turned away I signalled to them and they left. And on the day of Eid, the black men were playing with shields and spears. Either I asked the Messenger of Allah (blessings and peace of Allah be upon him) (to let me watch) or he said, “Do you want to watch?” and I said: Yes. So he made me stand behind him, with my cheek against his, and he was saying, “Carry on, O Banu Arfidah!” until I had had enough, then he said, “Have you had enough?” and I said yes, so he said, “Go then.”
Narrated by al-Bukhaari (907) and Muslim (892)
According to another report, ‘Aa’ishah said: The Messenger of Allah (blessings and peace of Allah be upon him) said: “So that the Jews may understand that in our religion there is some leniency, I have been sent with monotheism that is of an easy nature.”
Musnad Ahmad (50/366); classed as hasan by the commentators; its isnad classed as jayyid by al-Albaani in as-Silsilah as-Saheehah (4/443).
An-Nawawi (may Allah have mercy on him) included it in a chapter entitled: The concession allowing play in which there is no sin during the days of Eid.
Al-Haafiz Ibn Hajar (may Allah have mercy on him) said:
In this hadith we learn that it is prescribed to be generous to one’s family and children during the days of Eid, with different kinds of things that will bring them pleasure and joy, and allow the body to relax after the effort of worship.
We also learn that expressing joy on Eid is one of the symbols of Islam.
Fath al-Baari (2/514)
Shaykh Ibn ‘Uthaymeen (may Allah have mercy on him) said:
Something else that is done on this Eid is the exchange of gifts, in other words they make food and invite one another, and they get together and celebrate. There is nothing wrong with this custom, because these are the days of Eid. Even Abu Bakr (may Allah be pleased with him), when he entered the house of the Messenger of Allah (blessings and peace of Allah be upon him – and he narrated the same hadith.
This indicates that one of the ways in which Islam makes things easy for people – praise be to Allah – is that it prescribes for them to express joy and happiness on the days of Eid.
Majmoo‘ Fataawa ash-Shaykh al-‘Uthaymeen (16/276).
In al-Mawsoo‘ah al-Fiqhiyyah (14/166) it says:
This confirms the idea that it is prescribed to be generous to one’s family and children during the days of Eid, with different kinds of things that will bring them pleasure and joy, and allow the body to relax after the effort of worship. Expressing joy on the days of Eid is one of the symbols of this religion, and playing on the days of the two Eids is permissible, both in the mosque and elsewhere, if it is done along the lines mentioned in the hadith of ‘Aa’ishah (may Allah be pleased with her) about the Abyssinians playing with weapons. End quote.
In the answer to question no. 36856 we have mentioned some of the wrong things that are done on Eid. Please read it.
We ask Allah, may He be exalted, to accept from us and from our righteous deeds, and to guide us and you to that which is best for us in both religious and worldly terms.
And Allah knows best.