The month of Muharram marks the beginning of the Islamic liturgical year. The Islamic year begins on the first day of Muharram, and is counted from the year of the Hegira (anno Hegirae)—the year in which Muhammad emigrated from Mecca to Medina (A.D. July 16, 622). The new year in 2008 marks the beginning of A.H. 1429.

Islam has a calendar based on the revolutions of the Moon. Thus, it is only 354 days long. Islamic New Year is celebrated on the first day of Muharram, the first Islamic month. Compared to Western calendars, the Islamic year goes 11 days backwards every year.

The marking of the beginning of the new year is usually quiet, unlike New Year's celebrations associated with other calendars. Muslims gather in mosques for special prayers and readings. A major part of the holiday is the telling of the hegira, Muhammad's flight from Medina to Mecca. Muslims also reflect on the passing of time and their own mortality.

It is said that during this month only, the soldiers of Yazid, a Muslim ruler, surrounded Hazrat Imam Hussain, along with his family and followers at a place called Karbala in Iraq. In the days that followed, they were denied food and water and many of them were even eliminated.

Since that day, Muharram is observed to commemorate Imam Hussain. In some parts of the world, meetings are held in honor of the martyrs, where speeches are given as a tribute. However, the Shia sect of Muslims follows a different tradition. They wear black through the duration of the festival as it is regarded as a color of mourning. During the first nine days, Majalis (assemblies) are organized in the morning, where people talk about the incident that took place at Karbala.

The Islamic new year is celebrated relatively quietly, with prayers and readings and reflection upon the hegira.