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That intrigued me as well, so I went to read some Wikipedia (https://en.wikipedia.org/wiki/Day_of_the_Dead).

Day of the Dead is a southern Mexican celebration that evolved from the assimilation of native culture (Maya and meso-American) into the Catholic calendar (all Saints/all Souls days). It wasn't celebrated much in Mexico City and northern Mexico until recently, pushed on in part by the government celebrating more indigenous culture and creating a national holiday, and then the movie.



Sounds a lot like how Yule and Saturnalia (among others) got rolled into what we now call Christmas.




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