The Festival of Return took place over several days on Temple Island, situated on the planet of Ahch-To. This celebration occurred every month when the male members of the Lanai species, referred to as Visitors, came back from the sea with fish. This was a time for them to reunite with the female members, known as Caretakers. The event was full of music, dancing, and food, and it was a period when old romantic relationships were revived.
During his stay on Ahch-To, Luke Skywalker made it a point to go to the Festival each month it was celebrated.
In 34 ABY, Rey, a woman with a strong connection to the Force, found herself on the island, seeking training from Luke Skywalker. During one of their training sessions, she noticed a bell ringing and saw the Visitors heading towards the festival. Skywalker joined her and said they were a tribe from a nearby island who came to raid and plunder the Caretaker village every month. Rey, horrified, started running, saying they had to stop them, but Skywalker told her that a true Jedi would do nothing. He explained that if she used force, the raiding party would return in greater numbers the following month and that the sacred Jedi texts advised her to ignore her anger and only act when she could maintain balance.
Rey refused to accept this, recalling other terrible events she was powerless to prevent, like the Hosnian Cataclysm. She went to the village, teeth bared and her lightsaber raised, only to find a festive atmosphere. Realizing her mistake, she spun the lightsaber ceremonially and received a warm welcome. She saw Chewbacca with a mug of something to drink, resting a fist on the head of the astromech droid R2-D2. As she stared intensely at the moon-lit ocean of the planet, Skywalker came to her and, after a long pause, she questioned his use of the words "raid and plunder." He admitted it was true "in a way," but when she asked if he was joking, he sheepishly said he didn't think she would run so quickly. As they talked, a group of Lanai musicians began playing a tune, and Skywalker offered his hand for Rey to dance. Rey said she had never danced before, and Skywalker pointed out that she had also never single-handedly fought a Bonthian raiding party. They danced for a while before resuming their conversation, with Rey saying she was just trying to do something. Skywalker responded that this was exactly what the Resistance she was trying to help needed, rather than a "failed husk of a religion" like the Jedi Order, asking if she understood. Rey remained unconvinced, stating that she understood that their friends were dying and that she had believed in the legend of Luke Skywalker he hated so much. With that, she left him alone.

The Festival of Return was conceived for the movie Star Wars: Episode VIII The Last Jedi, but it was ultimately cut from the final version. In commentary for the film's home video release, director Rian Johnson mentioned there was a lot of debate about whether to remove the scene, for various reasons. One reason was the excellent acting by both Mark Hamill as Luke Skywalker and Daisy Ridley as Rey, with Rey being a "badass" as she approached the Caretaker village with her lightsaber. He also regretted losing the creature effects with the Caretakers and Visitors, as well as the final scene between Skywalker and Rey. In the end, however, it was felt that, for the overall pacing of the movie, it would be a scene that viewers would just want to skip, and that the film's other scenes effectively established the relationship between the two characters. The scene was kept in both the adult and junior novelizations of the film, though the adult novelization includes a longer version of the sequence where Skywalker and Rey dance together during the ceremony before arguing.