This chapterCulture, from the overall perspective of society and culture, seeks to understand the concept of festivals as conceived by ancient people, in which festivals functioned both as symbols of collectiveCollective assembly and as systematic arrangements of social time. They helped separate daily routines from rest and celebration, while punctuating both the rhythm of the seasonsSeason and the pace of society. Cultural festivals often originated from grassroots initiativesGrassroots initiatives, rooted in the daily practices and beliefs of localLocal communities. These eventsEvent relied on “local elements” of meaning and identity to imbue the festival. However, foreign or “foreign elements” have been omnipresent at any given point in history, and cultural exchanges have taken place through shifting festivals. Thus, this chapter will address the differences between traditional, political, and emergent festivals and how they serve various purposes in the society; from protection of cultural heritageCultural heritage and social credibility to a response against current social and marketMarket conditions. Besides theoretical reflections, it also emphasizes the powerful role festivals play in establishing local identity, cultivating communityCommunity cohesionCohesion, producing cultural capital, stimulating localLocal industries, and energizing local economies. More broadly, the chapter provides a comparative and international approach, surveying festival societies, cultural practices, and festival economies internationally. Within this globalGlobal context, the case of TaiwanTaiwan comes into view. This chapter highlights not only Taiwan’s unique festival traditions, but also Taiwan’s evolving festival culture and developing festival-based tourism and economy, and so demonstrates the opportunities and threats in the search of the right balance between culture preservation and economic development. In conclusion, this chapter is devoted to presenting suggested policyPolicy and reform strategies for Taiwan’s festival culture and festival tourismTourism sector. Placing TaiwanTaiwan in the broader globalGlobal socio-political, economic and cultural framework, the analysis aims to address not only the academic debates related to festival studiesFestival studies, but also contribute meaningful insights to practice in cultural and economic sustainabilitySustainability.