A luminaria or a farolito is a small light or lantern (commonly a candle set in some sand inside a paper bag) which has its origins as a Spanish Christmas-time tradition dating to the 16th century; small bonfires were set along roads and paths to light the way to Midnight Mass.
In recent times luminarias are seen more as a secular decoration, akin to Christmas lights. Strings of artificial luminarias, using plastic bags illuminated by small electric light bulbs are common in the American Southwest, where they are typically displayed throughout the year-end holiday season.
Some people in the Southwest call the paper bag lanterns luminarias, while others insist the correct term is farolitos since ''luminarias'' was the term used for bonfires lining the roads. Whatever you choose to call them, the warm and welcoming glow of luminarias is sure to become one of your favorite holiday traditions regardless of where you live.