The 20th day of August is the day of St. Stephen in Hungary. He was the first king of the country, therefore this is the day of the Foundation of Hungary, and the day of the new bread. Since this is a public holiday, most people have their days off, and celebrations are held all over the country. At 9 o'clock in the evening, a firework show starts - there are huge crowds in the streets, and you will need to find a spot for yourself at around 7 o'clock or even earlier to enjoy the show perfectly.
In Budapest, several events and celebrations are held all day long. Every year, confectioners compete with each other to have their cakes as the 'Cake of the Country' - something delicious, something Hungarian, and something that will become very famous and popular!
You can also have a slice of the 'new bread' (wheat), listen to concerts all day long, visit some museum without an entrance fee (today we did the Museum of Hungarian Folklore, the Museum of 1956 and the House of Terror), and even wander around the Festival of Crafts in the Castle of Buda. At the festival, you can also try lots of national dishes and snacks, and get to know the Hungarian traditional costume!
Now, here's a list of my favourite spots to see the firework show from in Budapest.
Bridges (especially Elisabeth)
Rooftops (Tip Top Bar, 360 Bar)
Above the Tunnel (Chain Bridge)