The traditional use of fanous as decorations associated with Ramadan is believed to have originated from Egypt when the Caliph Al-Muizz Lideenillah was greeted by the Egyptian people holding lanterns to celebrate his arrival at Cairo during the holy month of Ramadan. Its use has now spread to almost all countries.

In Ancient times it was similar to a lamp, and would have incorporated either candles or oil. The fanous originally developed from the torches used in the Pharaonic festivals celebrating the rising of the star Sirius. For five days, the Ancient Egyptians celebrated the birthdays of Osiris, Horus, Isis, Seth and Nephtys by lighting the streets with the fanous.

Lanterns are widely used all over the world not just for a specific religious purpose, but for decorative purposes. They can be found in houses, restaurants, hotels, malls, etc. Often arranged as a grouping of lights arranged in different designs and shapes. Metal and glass are mostly used for their construction.