After Goa becomes a State, a Union Territory was formed on 30th May 1987 consisting of two separate Districts of Daman & Diu.
Diu becomes popular as Tourist Destination due to its scenic beauty, the wonderful sandy beaches and the heritage buildings.
In order to create an atmosphere of festival so that the domestic as well as foreign tourist can find an occasion to come to Diu. The administration decide to organise Diu Festival syncronised with Liberation Day of Daman & Diu where the folk performance and traditional craftsman, who mange to keep their heritage alive, can expose their talents during the festival. As a part of festival a mega event organised where the professional artist and group called for their performance to attract the tourists and people of Diu District.
The Diu festival commences from 1993 and since then it is continuing every year in the month of December starting from 19th for three to four days. The 19th December 1961 is the liberation day of Diu. During the festival Culture Program, Folk Dances from West Zone Culture Centre, No. of Competition (Beach Volleyball, Canoe Race, Swimming Competition, Running Competition, Cycling Competition, Mehendi Competition, Rangoli Competition, Badminton Competition, Table Tennis Competition etc. etc.), Mega Events where professional performer can perform their performance. The Food Festival is also one of the major attractions to the local public, Indian tourist as well as foreign tourist.