For Diwali bright colours and shades are preferred over dull and pale shades like reds, pinks, purples, blues, yellows, oranges, and other similar shades to decorate your house. Avoid using a lot of neutral shades, especially black.
Traditional Diwali decoration ideas include torans, diyas, lamps, lights, rangoli, lanterns, etc.
You can use earthen diyas as well as electric diyas on your balcony. While using open fires, remember to keep them out of the reach of children or do not leave the diyas unattended.
You can use drapery, string lights, candles (especially scented) and various flowers to decorate bedrooms for Diwali.
Use wall hangings and floral garlands to decorate walls on Diwali. You can also use decals that can be pasted on walls. Another option is to use wallpaper, new paint, or even wall tiles for the same.
No decoration is the best decoration, however, as Diwali is the festival of lights, no decoration for Diwali can be said to be complete without lights.