Festivals have become a phenomenon that is evolving rapidly. They have a major impact on tourism industry as they draw the attention of visitors, resulting in the emergence of festival tourism whose significance has been gradually growing. In this regard, this study aims at studying the potential of festival tourism in Egypt, using qualitative descriptive research method that focuses on describing the nature of a phenomenon without covering “why" it happens to describe the state of festival tourism in Egypt, and investigate the potential impacts of it on the Egyptian destination. The study findings demonstrate that Festivals play an important role in the Egyptian tourism industry, whereas it helps to attract more tourists with different motivations. Besides, it holds several religious, arts, and cultural festivals which generate tourist traffic, aviation operations, and hotels' occupancy rates as well. Additionally, there are significant effects of the Egyptian Festivals on the tourism development destination. Therefore, the study recommends promoting the Egyptian festivals internationally to put Egypt on the map of festival tourism destinations via the official platforms and various electronic media channels, to exploit festival tourism all over the year, not just in summer season with consideration of the sustainable development principles.