The Spirits' Friendship Festival was a celebration first held in 102 AG on lands previously held sacred by the Air Nomads. It developed after Team Avatar's efforts to reinstitute Yangchen's Festival failed and involved many observances that were historically practiced by the Air Nomads prior to the Hundred Year War.
In the aftermath of General Old Iron's defeat, Avatar Aang felt incapable of maintaining a balance between the two worlds, believing that spirits were only a relic of the past with no future in the human realm. However, he realized that it was possible to coexist with the spirits after he consulted with Lady Tienhai, who insisted that spirits would always have a place in the world if humans continued to create those places. Fully aware that Yangchen's Festival was outdated and incompatible with a modernizing world, Aang spent the following three months repurposing the observances to uphold the same traditions but in a different way.
The Spirits' Friendship Festival involved a parade through town, accompanied by music played using traditional Air Nomad instruments. Roadside kiosks and local vendors offered food for participants, while paraders marched bearing banners or flying cranefish kites to honor the spirits.
During the first celebration of the festival in 102 AG, workers from the Earthen Fire Refinery, members of the Rough Rhinos, students of the Beifong Metalbending Academy, the Air Acolytes, and several members of Team Avatar participated in the festivities. Sokka sold fresh meat kebabs to spectators, while the Air Acolytes and Toph's students led the parade. The cabbage merchant also opened his shop to feed parade attendees, among which Satoru.