Diwali is primarily associated with Lord Rama's return to Ayodhya after 14 years of exile (victory over Ravana), the worship of Goddess Lakshmi, and various regional legends. The destruction of Bali is associated with Onam in Kerala (Vamana avatar), not Diwali. While there are multiple legends associated with Diwali across India, the Bali narrative is specifically linked to a different festival.