One more fantastic mythical story is associated with the celebrations of Diwali. The festival of lights also pays a tribute to the birth of Goddess Lakshmi, who is the Goddess of wealth as well as health. The legend of emergence of Goddess Lakshmi is popularly known as the legend of Samudra Manthan.

The story of Samudra Manthan goes like this. Once, the great sage Durvasa was out for a walk when he met Indra. Indra in his own world rode ignoring the Durvasa and even threw the garland given by him on Airavata. Durvasa got really angry over Indra's ill-behaviour and cursed him saying " The pride of wealth has entered your head. Let Lakshmi forsake you." Indra realized his mistakes and begged mercy from him. On this, Durvasa said " Sri Vishnu will do good to you" and left him.

As the result of the effect of curse, soon after Lakshmi left Indra. With Lakshmi was gone the power, wealth, bravery and enthusiasm possessed by him. The moment Indra lost his kingdom, Demons attacked him. He hid out of their sight and was constantly running in order to safeguard his life. He went for help to Lord Vishnu through his teacher and guide Brihaspati. Lord Vishnu advised him make demons his friends and with their assistance churn the sea of milk (the process of Samudra Manthan). For this, he asked him to Mandara as the churning rod and Vasuki, the king of serpents, as the rope.

On churning the sea, nectar was produced, which was drunk by the all the God so as to gain the state of immortality. Lakshmi appeared again standing amidst the gigantic milky tides and in the middle of a beautiful Lotus. She showered on him all that had been taken away from Indra. The King of Sea appeared and embraced Goddess Lakshmi as his daughter. This was the amazing story of Indra and Lakshmi reunion.

Since time immemorial, Hindus commemorate the birth of Goddess Lakshmi on the third day of Diwali. Lakshmi Pujan is performed and the dark night of Amavasya is enlightened with long arrays of diyas, candles and bulbs of beautiful colors. Homes are decorated after a thorough cleaning as it is believed that on this auspicious day Goddess Lakshmi strolls in green lawns and visit the homes.