During the week , Baños is a sanctuary of peace and quiet. However, there is the occasional traditional Andes produce fair and the English-spoken film shown nightly in the movie theater or the town chapel; in addition, on weekends and feast days Baños becomes a "carnival town".

In October, there is the popular festival called Nuestra Señora del Agua Santa which translates as Virgin of the Holy Waters. This festival is representative of Baños’ origin. Historically people came to the church in the center of town in order to thank the Virgin for her many miracles and ask for her blessing. Thus, this festival celebrates the Virgin of Holy waters as well as Baños’s origins. This festival draws many crowds due to its elaborate religious processions, music, dancers, and fireworks

December 15/16 is Baños anniversary celebrations. These festivals begin the evening before with verbenas. These verbenas are parties in which each barrio, or in other words neighborhood, hires a festive or famous traditional band. Throughout the day and night, the residents of each barrio hosts dances in the streets and constant revelry. It is an excellent time for travelers to visit because it provides an exuberant perspective of native life. In addition, the actual anniversary day is distinguished by a day filled with parades, street fairs, dances and sports events.