Indian festivals, deeply rooted in spirituality and cultural heritage, have evolved into global celebrations that transcend their traditional boundaries. These vibrant festivals serve not only as expressions of religious devotion but also as platforms for cross-cultural engagement, inclusivity, and intercultural dialogue. This paper explores how Indian festivals such as Diwali, Holi, and Navratriact as tools of cultural diplomacy, promoting mutual respect and shared experiences across diverse populations. By reviewing scholarly sources, case studies, and current global celebrations this study evaluates the impact of Indian festivals in shaping intercultural understanding and fostering a sense of collective identity in an increasingly interconnected world. The paper also examines the role of the Indian diaspora, the impact of globalization, and the challenges of commercialization and cultural appropriation, offering insights into how these festivals contribute to a more inclusive and harmonious global community.