I've visited Oaxaca twice for Dia de Muertos and I can't imagine a better place to participate in…read morethe festivities. The city is positively hopping with vendors and parades and the decorations and ofrendas are amazing! We usually go to the Pantheon General on the night of Nov. 1, where the locals are celebrating the lives of their dearly departed. Outside the Pantheon, it's very similar to a carnival/street fair atmosphere you'd experience in the states. All manner of bright lights and street food available. It's definitely a strange juxtaposition to the relatively somber, yet festive atmosphere inside the cemetery. The arcade walls are lit with votive candles and it's just beautiful. The city of Oaxaca is beautiful, no matter what, but during DDM, it's so wonderfully colorful and it's such a special atmosphere to in which to participate and experience.