People wear new clothes and celebrate this festival by worshipping gods. The success and achievement is indicated by erected bamboos, which are locally known as Gudhi, wrapped in bright silk cloth. A bright writhe is hung at the top of the Gudhi. Houses are decorated with bright rangoli designs, and sweets like Shrikhand, Basundi and Jalebis are made to be offered in the Puja. The Gudhi is worshipped religiously. Neem leaves, Ajwain, Tamarind, Gram Pulse and Jaggery are offered in the forms of Prasad.
There are several mythological beliefs behind the day of Gudhi Padwa. Some say that this is the day when Bali was killed by Rama and he returned to Ayodhya successfully. It is also believed that Brahma created the universe on this day. The Gudhi Padwa is also considered as the beginning of Satyayug or the period of truth and justice. According to the Hindu lunar calendar, there are 3 and half days in a year whose every moment is auspicious. The Gudhi Padwa is one among those three days.


