Anas (ra), a companion of prophet Muhammad (peace be upon him) reported that when the Prophet Muhammad (PBUH) migrated from Makkah to Madinah, the people of Madinah used to have two festivals. On those two days they had carnivals and festivity. Prophet Muhammad (PBUH) asked the Ansaar (the Muslims of Madinah) about it. They replied that before Islam they used to have carnivals on those two joyous days. The Prophet Muhammad (PBUH) told them: 'Instead of those two days, Allah has appointed two other days which are better, the days of Eid-al-Fitr and Eid-al-Adha.' (Hadith)
EID-UL-FITR is celebrated on the first day of Shaw'waal, at the completion of Ramadan. Shaw'waal is the 10th month of the Islamic calendar. The Eid-al-Fitr is a very joyous day; it is a true Thanksgiving Day for the believing men and women. On this day Muslims show their real joy for the health, strength and the opportunities of life, which Allah has given to them to fulfill their obligation of fasting and other good deeds during the blessed month of Ramadan.
Sunnah of Eid
Wake up early.
Prepare for personal cleanliness, take care of details of clothing, etc.
Take a Ghusl (bath) after Fajr.
Brush your teeth.
Dress up, putting on best clothes available, whether new or cleaned old ones.
Use perfume (men only).
Have breakfast on Eid-al-Fitr before leaving for prayer ground. On Eid-al-Adha, eat breakfast after Salaat or after sacrifice if you are doing a sacrifice.
Pay Zakaat-al-Fitr before Salaat-al-Eid (on Eid-al-Fitr).
Go to prayer ground early.
Offer Salaat-al-Eid in congregation in an open place except when whether is not permitting like rain, snow, etc.
Use two separate route to and from the prayer ground.
Recite the following Takbir on the way to Salaat and until the beginning of Salaat-al-Eid:
Allaho-Akber, Allaho-Akber. La ila-ha ill-lal-lah. Allaho-Akber, Allaho-Akber. Wa-lilahill hamd.
(Allah is great, Allah is great. There is no god but Allah. Allah is great, Allah is great. And all praises are for Allah).
How to offer Eid prayer:
Ibn Abbass (ra) reported: " I participated in the Eid-ul-Fitr prayer with the Messenger of Allah (saw), Abu Bakr (ra), Umar (ra) and Uthman (ra), and all of them held Eid prayer before Khutbah, and then the Prophet Muhammad (saw) delivered the Khutbah (sermon)." ( Muslim )
Who should go to the prayer ground & offer Eid Prayer:
Umm Atiyah (ra) reported: "The Messenger of Allah (saw) commanded us to bring out on Eid-al-Fitr and Eid-al-Adha, young women, hijab-observing adult women and the menstruating women. The menstruating women stayed out of actual Salaat but participated in good deeds and Duaa (supplication). I (Umm Atiyah) said to the Holy Prophet (saw): Oh! Messenger of Allah, one does not have an outer garment. He replied: Let her sister cover her with her garment."
( Muslim )
On the Eid day, every believing man, woman and child must go to the prayer ground and participate in this joyous occasion.
Structure of Eid prayer:
Eid prayer is wajib (strongly recommended, just short of obligatory). It consists of two Rakaat (units) with six or thirteen additional Takbirs. It must be offered in congregation. The prayer is followed by the Khutbah.
The Khutbah is part of the worship and listening to it is Sunnah. During the Khutbah, the Imam must remind the community about its responsibilities and obligations towards Allah, fellow Muslims and the fellow human beings. The Imam must encourage the Muslims to do good and ward off evil. The Muslim community must also be directed to the state of the community and the Ummah at large and the feelings of sacrifice and Jihaad should be aroused in the community. At the conclusion of the prayer the Muslims should convey greetings to each other, give reasonable gifts to the youngsters and visit each other at their homes. Muslims should also take this opportunity to invite their non-Muslims neighbors, co-workers, classmates and business acquaintances to Eid festivities to expose them to Islam and Muslim culture.