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Since the 1860's the parade has combined the 5,000-year-old traditions of the Lantern Festival along with a good old American parade. It is one of the few remaining lighted nighttime parades in the country and (counting both the people watching along the parade route and the television viewers) is the most watched parade on Earth.
It is also the largest celebration of Asian culture outside of Asia. You're going to have to hop a flight to Shanghai, Hong Kong or Beijing to see a bigger celebration.