To dream of being at a festival, denotes indifference to the cold realities of life, and a love for those pleasures that make one old before his time. You will never want, but will be largely dependent on others.
To dream that you are at a festival suggests that you have become somewhat callous to the events around you. You are acting cynical and though you may not ask for others’ help, you are certainly relying on them.
A festival is a church or religious feast, as in harvest festival. This was originally a pagan feast to honour the fertility gods and give thanks for a good harvest. It signifies a spiritual celebration.
Psychological / emotional perspective: Festivals are very specific for a number of cultures. While in many cases they have become somewhat secularized, in dreams they mark the need for family or group gathering in order to celebrate an event or happening. Such rituals and occasions help to cement both individual and community relationships.