Another Hallowe'en festival is called The Feast of the Hungry Ghosts. In China the souls of the dead, particularly during the seventh lunar month, wander the earth in search of affection. They are known as the hungry ghosts because of their hunger for recognition and care.

The number of souls is usually increased by those who died unnatural deaths, and who may not have been given a proper burial or burial place which their families could visit in order to pay them respect. Other such Hungry ghosts that are abroad during this month are the spirits of people whose families had either died out or who showed no concern for their welfare in the beyond. Bereft of comfort, they feel abandoned and, lacking ancestral worship, may turn malignant and become powerful threats to the living.

The purpose of the Festival of the Hungry Ghosts, is dedicated to the earthbound spirits. Its purpose is to make them feel welcome and to satisfy their spiritual hunger. This will placate any possible anger they might have and gain their gratitude.

In the sacred ritual of the day, the spirits are offered joss sticks, food and gifts. The gifts, made of paper, represent objects with which they were familiar while on earth and are intended to make them feel at home. Paper money is burnt on their behalf, to pay for their expenses in the netherworld. Fires are lit to light the way for the hungry ghosts and a gesture of welcome.