Daimonji, or properly, gozan-no-okuribi is one of 4 big events in Kyoto and has some hundreds year history.
It literally means "five mountains sending off fire". This is held on August 16th, the last day of obon in order to send off the spirits of ancestors that has came back home during obon.
5 giant bonfire are lit on mountains surrounding the city at night. They are the chinese characters of 2 dai meaning "large", myoho meaning "excellent law" , and 2 shapes of ship and torii.
As for okuribi, it is still observed today at the entrance or in the garden of some houses, and they usually light fires called mukaebi to welcome the spirits in the late afternoon on the 13th.
Obon is usually from August 13th to 16th and the most important religious holidays.
During obon, many people often go back to their hometown and visit their ancestors' graves and bon dance festivals are also held in communities and towns throughout Japan.