The National Favela Day was decreed in 2006, after considerable campaigning conducted by the Central Única das Favelas - CUFA (United Center of Favelas), based in Rio de Janeiro - The successful campaign included a petition with over 700,000 signatories.

One of the driving principles behind the concept of a national day was the desire to improve the self-esteem of favela populations, who have experienced considerable discrimination and negative stereotyping in the past hundred years.

CUFA and its supporters identified the need to celebrate all aspects of the vibrant and distinctive history and culture of favelas, as well as a pressing urgency to alter prevailing preconceptions of them.