The ancient festival known for the hanging of colorful flags in Bhutan is called Paro Tsechu. This festival celebrates the teachings of Guru Padmasambhava, who is credited with bringing Buddhism to Bhutan. The vibrant flags symbolize various auspicious elements and are believed to bring good fortune. During the festivities, traditional dances, rituals, and performances take place, creating a lively atmosphere that strengthens community bonds and cultural identity.