Carnival of Time

The Carnival of Time is an event that takes place in Clock Town annually. People come from all over Termina to celebrate the carnival and pray for a good harvest that year. While it is never explicitly stated in-game that the carnival is also a "new year's" celebration, it is implied as such.

Customs
While in the past the tradition was to wear masks bearing the images of the four gods, it has become custom over the years for everyone to come wearing a mask that they have made themselves. These people will wait anxiously for midnight of that day, as at that time the Clock Tower's entrance will open, and the tower itself "falls over", causing the clock face to be level with the ground. This allows people to go into the entrance and stand on the clock face as they make their prayers and sing ceremonial songs.

There is also a legend that states that if a couple unites on the day of the carnival itself (signified in Clock Town by the fusing of the couple's homemade ceremonial masks), then good luck will follow them.