During the Obon festival in Japan, people honor their ancestors by participating in traditional rituals and activities. This includes visiting graves, offering food, and lighting lanterns to guide the spirits back home. Families often create altars, known as Obon butsudan, with incense and flowers as offerings. Dancing, known as Bon Odori, is also an essential element, allowing communities to celebrate their lost loved ones while fostering a sense of community and togetherness during this poignant time.