This article examines the Ohuchi origin of the Yamaguchi Lantern Festival from historical and anthropological perspectives, and argues how its role as a religious and historical factor has changed along with the expansion and diversion of the Yamaguchi Lantern Festival, which underwent a great transformation during the urbanization of Yamaguchi City after World War II. It is obvious that the religious and historical relevance of the Ohuchi clan has been erased as the Yamaguchi Lantern Festival changed into an amusement for urban residents．The festival shares a fate common to festivals in other cities in postwar Japan as they experienced rapid economic growth and urbanization．On the other hand, by emphasizing religious and historical relevance with the Ohuchi clan, some activities have been promoted recently by local associations to create a common sense in residents and strengthen ties within the community．Such activities might be regarded as strategies to solve problems such as population outflow and an increasingly aging society, two issues which are more serious in regional cities than metropolitan cities.