It literally means 'Feast of Sacrifice.' As the name implies, this Islamic festival involves the killing of rams to commemorate the willingness of Prophet Ibrahim to follow Allah's command to sacrifice his son, Ismail. He later sacrificed a lamb in place of his son.
On this day, Muslims sacrifice rams, cows sometimes goat. The slaughtered animal is then divided into three parts. One part is given to the poor, another third to friends and neighbors; while the remaining third is kept for the family.
What Muslims do on the day of Eid
Killings of rams is not the only thing done on this day. Here are three important things Muslims are expected to do on the day of Sallah:
Zakat al-Fitr
Muslims are expected to offer the Zakat al-Fitr before the 'Eid prayer. As instructed by the Prophet (SAW), this can be done one or two days before, but it must be done before (Eid) al-Fitr.
According to the hadeeth of Ibn 'Umar (RA) which was narrated by al-Bukhaari: "If it is paid after the 'Eid prayer, it does not count as Sadaqat al-Fitr, because of the hadeeth of Ibn 'Abbaas: "Whoever pays it before the prayer, it is Zakaat al-Fitr, and whoever pays it after the prayer, it is ordinary charity."
Ghusul
It is required for Muslims to take the full-body ritual bath before setting out for the Eid.
Look your best
Since this Eid is considered the holier and bigger of the two Eids, then Muslims are expected to wear their best clothes, preferably new ones when they go out to the Eid prayer.
Muslims are also required to praise Allah throughout the day and visit friends, families, neighbors.