Legend associated with this festival claims that Lord Ram Chandra crossed Chanderi in the month of Phalgun during his thirteen year long vanavas and sanctified the land. To this affect, Rang Panchami is celebrated five days after holi in the month of Phalgun on a hill top at Karila.
The celebration begins at dusk with the Rai dance performed by Bednis, women of the Bediya caste, under flaming torches held aloft by men. More than five lakh men from Chanderi and its surrounding areas are audience to this great spectacle.