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Memorial Day is a United States federal holiday observed on the last Monday of May (May 31 in 2010). Formerly known as Decoration Day, it commemorates U.S. men and women who died while in the military service. First enacted to honor Union soldiers of the American Civil War (it is celebrated near the day of reunification after the Civil War), it was expanded after World War I.
According to Professor David Blight of the Yale University History Department, the first memorial day was observed by formerly enslaved black people at the Washington Race Course (today the location of Hampton Park) in Charleston, South Carolina. The race course had been used as a temporary Confederate prison camp in 1865 as well as a mass grave for Union soldiers who died there. Immediately after the cessation of hostilities, formerly enslaved people exhumed the bodies from the mass grave and reinterred them properly with individual graves. They built a fence around the graveyard with an entry arch and declared it a Union graveyard. The work was completed in only ten days. On May 1, 1865, the Charleston newspaper reported that a crowd of up to ten thousand, mainly black residents, including 2800 children, processed to the location for a celebration which included sermons, singing, and a picnic on the grounds, thereby creating the first Decoration Day.
**All information obtained about Memorial Day was taken from the Wikipedia page Memorial Day: http://en.wikipedia.org/wiki/Memorial_Day . Check out this link for more information.
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