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Day of the Dead – Mexico Day of the Dead is celebrated on November 1 in Mexico, Ecuador, Guatemala and other parts of Central and South America. Families gather to pray to the souls of dead relatives, asking them to return for just one night. People decorate altars in their homes and graveyards with food, candles, candy skulls and marigolds to welcome the souls back to Earth. Skeletons are displayed throughout cities, and people dressed as skeletons parade through the streets. Pan de los muertos (bread of the dead) is baked in the shape of skulls and crossbones, and toy is hidden inside each loaf. The person who bites into the toy is said to have good lunch. Day of the Dead is a time to celebrate and remember the lives of dead family members.