Shaykh Muhammad ibn Salih al-Uthaymin (rahimahullah) was asked:

“There is a practice spreading in the villages, especially after the pilgrims return from Mecca.”

The Shaykh asked: “This year?”

The questioner responded: “Almost every year, they hold feasts which they call ‘Sacrifice for the Pilgrims’ or ‘Party for the Pilgrims’ or ‘Safety of the Pilgrims.’ These feasts might involve meat from the sacrifice of Eid (Udhiyyah) or new animals slaughtered for the occasion, and this is often accompanied by a kind of extravagance. What is your opinion from a Shari‘ah and social perspective?”

The Shaykh answered: “There is nothing wrong with this. There is no harm in honouring the pilgrims upon their return from Hajj because this shows appreciation for them and also encourages others to perform Hajj. However, the extravagance you mentioned and the wastefulness are what should be avoided, as extravagance is prohibited, whether for this occasion or others. Allah, the Blessed and Exalted, said:

وَلَا تُسْرِفُوا إِنَّهُ لَا يُحِبُّ الْمُسْرِفِينَ

‘And do not waste by extravagance, for Allah does not like the extravagant.’ (al-An‘am 6:141)

And He said:

إِنَّ الْمُبَذِّرِينَ كَانُوا إِخْوَانَ الشَّيَاطِينِ

‘Indeed, the wasteful are brothers of the devils.’ (al-Isra 17:27)

But if the feast is appropriate, matching the number of attendees, or perhaps slightly more, then there is no problem from a Shar‘iah or social perspective. This practice may be common in villages, but in cities, it is rare. We often see people returning from Hajj without any feasts held for them. However, in small villages, this might be found, and there is nothing wrong with it. People in the villages are generous and do not like to fall short in honouring one another.”

Source: Liqa’ al-Bab al-Maftuh (no. 154, Question 12)