The Kolayat Fair in Kolayat, Bikaner is also called the 'Kapil Muni Fair'. This fair is observed on the banks of the stunning Kolayat Lake. Devotees, who come here for the festivities, bathe in the lake on the day of the festival. It is believed that by taking a dip into the lake they purge their sins.

The celebrations of Kolayat Fair hold a special significance to the local people. According to historical records, Kolayat in Bikaner was also regarded as Kapilayatan. This name was assigned to the place after Kapil Muni, a revered sage. Not only this, these names are also found in the holy scriptures of Puranas and hence corroborate their significance.

It is considered very auspicious to take a dip on Kartik Poornima in the Kolayat lake. Visiting Kolayat has been considered to be a tirtha or pilgrimage of great importance and it is believed that one day's stay at Kolayat benefits as much as 10 years spent at any other sacred place.

The legendary Maharishi Kapil and the Kapilayatan lake find mention in the Puranas and Kapil Muni is believed to have descended from Lord Brahma.

Worship in the temples is performed by Sewag Brahmins whose priesthood is hereditary. Aarti is performed twice daily and bhog is offered. On the day of Kartik Poornima, the day of Kapil Muni Fair, Deep Malika is performed in the evening. People float lighted lamps in the sacred lake as a part of the rituals and this creates a beautiful sight. Offerings are made at the temples consisting of coconut, batasha (sugar drops), dry fruits, mishri(sugar cubes) and cash.
A cattle fair is held in conjunction with the Kapil Muni Fair. Buffaloes, camels, horses and cattle are sold. Certificates and prizes are given away to the best breeders at the fair.