Fancy lantern, also called Huadeng, are widely used for decorations in both rural and urban areas in China on holiday, festival, especially on New Year's Day.

On the whole, it mainly consists of a frame made of bamboo strips or metal wire covered with paper or thin gauze. Some lantern are painted with characters in ancient or current stories, or pasted with paper-cuts.

Many types of traditional lanterns fit the description of "fancy"; those that are palace lanterns, lanterns with revolving figures, and lanterns in the shape of animals or plants such as a rooster, lion, goldfish, lotus, Chinese cabbage, flower basket, etc. In Foshan of Guangdong province, there is a kind of lantern whose pictures are made of sesames, which people call an edible lantern.

Large lantern fairs are held everywhere in China during festivals. Apart from traditional lanterns, there are many lanterns made with modern technology. In winter, cities in North China, like Beijing and Harbin, hold ice lantern festival. Huge sculptures of buildings, animals and fairies are illuminated by colorful lights to give the transparent look of a magical wonderland.