There is a symbolic legend found in the 7th chapter of the Bhagavata Purana explaining why Holi is celebrated as a festival of triumph of good over evil in the honour of Hindu god Vishnu and his devotee Prahlada. King Hiranyakashipu, the father of Prahlada, was the king of demonic Asuras and had earned a boon that gave him five special powers: he could be killed by neither a human being nor an animal, neither indoors nor outdoors, neither at day nor at night, neither by astra (projectile weapons) nor by any shastra (handheld weapons), and neither on land nor in water or air. Hiranyakashipu grew arrogant, thought he was God, and demanded that everyone worship only him. Hiranyakashipu's own son, Prahlada, however, remained devoted to Vishnu. This infuriated Hiranyakashipu. He subjected Prahlada to cruel punishments, none of which affected the boy or his resolve to do what he thought was right. Finally, Holika, Prahlada's evil aunt, tricked him into sitting on a pyre with her. Holika was wearing a cloak that made her immune to injury from fire, while Prahlada was not. As the fire spread, the cloak flew from Holika and encased Prahlada, who survived while Holika burned. Vishnu, the god who appears as an avatar to restore Dharma in Hindu beliefs, took the form of Narasimha – half human and half lion (which is neither a human nor an animal), at dusk (when it was neither day nor night), took Hiranyakashyapu at a doorstep (which was neither indoors nor outdoors), placed him on his lap (which was neither land, water nor air), and then eviscerated and killed the king with his lion claws (which were neither a handheld weapon nor a launched weapon).

Holi is of particular significance in the Braj region, which includes locations traditionally associated with Radha Krishna: Mathura, Vrindavan, Nandgaon, Barsana and Gokula which become touristic during the season of Holi.