The Pagay Festival is held annually every September 28 in conjunction with the founding anniversary of the town of Alicia. It used to be called Alicia Town Festival, but was redefined and renamed to Pagay Festival in 2010 by Mayor Cecilia Claire N. Reyes. The festival aims to uphold the town’s cultural identity and heritage and to promote the municipality’s primary agricultural product called, pagay (Ilocano word for rice)- the municipality’s major livelihood economy and trade mark. The festival is widely participated by the community which features various competitions (e.g., rice planting, harvesting, and cooking among others), street dance showdown, beauty pageant (Mutya ng Alicia), battle of the bands, and exhibits. However, the Pagay Parade is the main highlight of the festival that features decorated carabaos, various rice crop floats, and people marching with colorful costumes which attracts tourists and visitors.