All Souls Day is set aside to commemorate the faithful dead in Catholic and other Christian denominations. Most protestant denominations, with the exception of the Anglican church, do not recognize the holy day. It is not to be confused with Día de Muertos (Day of the Dead) which does remember friends and family who have died but is not a Catholic or Christian religious event(though it takes place from 31 Oct through 2 Nov which coincides with Halloween, All Saints’ and All Souls’ Day).
One of the purposes of All Souls Day is to pray for those in purgatory. Purgatory is one of the places, according to Catholic belief, a soul may go after death (the other two places are heaven and hell). Purgatory is an intermediate place where people who are free of mortal sin but still in a state of lesser (venial) sin. While most celebrate All Souls Day on 2 November, Eastern Orthodox has several days during the year it celebrates the holy day. Though a holy day, unlike All Saints’ Day is it not a holy day of obligation (meaning you go to church).