The festival in Italy known for its famous 'Palio' horse race is the Palio di Siena. Held twice a year, in July and August, this historic event takes place in the beautiful town of Siena. The race features different contrade, or districts of the city, competing for glory, with riders racing bareback around the Piazza del Campo. The event is filled with pageantry, tradition, and local pride. The Palio not only showcases equestrian skill but also reinforces the strong sense of community within each contrada.