Anas (ra), a companion of prophet Muhammad (peace be upon him) reported that when the Prophet Muhammad (PBUH) migrated from Makkah to Madinah, the people of Madinah used to have two festivals. On those two days they had carnivals and festivity. Prophet Muhammad (PBUH) asked the Ansaar (the Muslims of Madinah) about it. They replied that before Islam they used to have carnivals on those two joyous days. The Prophet Muhammad (PBUH) told them: ‘Instead of those two days, Allah has appointed two other days which are better, the days of Eid-al-Fitr and Eid-al-Adha.(Hadith)
SUNNAH OF EID DAY
Wake up early.
Prepare for personal cleanliness, take care of details of clothing, etc.
Take a Ghusl (bath) after Fajr.
Brush your teeth.
Dress up, putting on best clothes available, whether new or cleaned old ones.
Apply Itr (perfume used only by men).
Have breakfast on Eid-al-Fitr before leaving for prayer ground.
Pay Zakaat-al-Fitr before Salaat-al-Eid (on Eid-al-Fitr).
Go to Eid prayer early.
Offer Salaat-al-Eid in congregation preferably in an open place except when whether is not permitting like rain, snow, regulations etc.
Use a separate route one for going and one returning from Eid prayer ground.
Recite the following Takbir on the way to Salaat and until the beginning of Salaat-al-Eid:
Allaho-Akbar, Allaho-Akbar. La ila-ha ill-lal-lah. Allaho-Akbar, Allaho-Akbar. Wa-lilahill hamd.
(Allah is great, Allah is great. There is no god but Allah. Allah is great, Allah is great. And all praises are for Allah).