The Lobethal Lights is the tradition dating back to the 1950s. At that time people were painting light bulbs by hand and cutting out Christmas decorations to make their town look pretty. Over time, Lobethal Lights has become the Southern Hemisphere's greatest residential light festival attracting up to 250,000 people. About 700 Lobethal homes and businesses put up Christmas decorations at their own expense to share the joy of Christmas.
The festival also has additional attractions such as a living nativity scene performing twice every night, a Christmas Pageant on Christmas Eve, and Carols in the Valley. The Lobethal Lights are switched on in early December after the opening ceremony and a fireworks display, which takes place in the Main Street of Lobethal. The Centennial Hall Market offers a variety of arts and craft stalls. During the Christmas season, tours around the Lights of Lobethal are available, starting in Lobethal and Adelaide.