Day of the Dead, or Día de Los Muertos, is a celebration of life and death, honoring the lives of family and friends who have passed on. Its origins are Mexican, but the holiday has spread far and wide.
Google's latest doodle -- in purple -- is meant to represent traditional tissue-paper cutouts associated with the holiday. According to Google's description, the "bright, delicate paper banners indicate that life is fragile and fleeting, but it's also full of beauty and delight."
Google has celebrated Day of the Dead with Doodles before. (Here's an archive.) Google also has its own page dedicated to Day of the Dead culture.
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