why did they make lanterns

Jeshua, this tradition (making and appreciating lanterns) can be dated back to the Eastern Han Dynasty. At that moment, Buddhism was very popular. Emperor Ming Di heard that monks lit lanterns to worship Buddhist Relics on Jan 15 according to CHinese lunar calendar. Therefore, he ordered that all temples observed this tradition. Besides, all civilians also hung lanterns on Jan. 15 too.

As time goes by, people have been used to make and hang lanterns on Jan. 15.