Traditional Lanna-style sky lanterns float gracefully into the night as people make merit in this northern festival. Folk also decorate their houses, gardens and temples with pretty shaped paper lanterns. The most elaborate celebrations can be seen in and around Chiang Mai, the ancient capital of the former Lanna kingdom. Yi Peng coincides with the Loy Krathong festival. The result sees twinkling lights floating on many stretches of water, hanging from trees and buildings and soaring high into the sky, giving many districts a fairytale feel.