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The months of the Islamic calendar begin when the first crescent of the new moon is sighted. The Holy Quran "was sent down from the heavens" in the month of Ramadan-the ninth month of the Islamic calendar.
Muslims fast through the entire month of Ramadan. It is a time when they concentrate on their faith and spend less time on the concerns of their daily lives.
During Ramadan, strict restraints are placed on the daily lives of Muslims. They are not allowed to eat or drink during the day. Smoking and sexual relations are also forbidden during fasts. The fast is broken with prayer and a meal called the iftaar. Following the iftaar, Muslims customarily go out meeting family and friends.
The good that is acquired through the fast can be destroyed by five things -

The telling of a lie,
slander,
denouncing someone behind his back,
a false oath,
greed or covetousness

These are considered offensive at all times, but are most offensive during the Ramadan.

During Ramadan, it is common for Muslims to go to the Masjid (Mosque) and offer special prayers in addition to the routine prayer called the Taraweeh prayer (Night Prayer. During Taraweeh, one chapter of the Quran is recited.
On the evening of the 27th day of the month, Muslims celebrate the Laylat-al-Qadr (the Night of Power). It is believed that on this night Prophet Muhammad first received the revelation of the Holy Quran. According to the Quran, this is when Allah determines the course of the world for the following year. Many Muslims spend the entire night praying.