The word itself, "Halloween," actually has its origins in the Catholic Church. It comes from a contracted corruption of All Hallows Eve. November 1, "All Hollows Day" (or "All Saints Day"), is a Catholic day of observance in honor of saints. But, in the 5th century BC, in Celtic Ireland, summer officially ended on October 31. The holiday was called Samhain (sow-en), the Celtic New year.
One story says that, on that day, the disembodied spirits of all those who had died throughout the preceding year would come back in search of living bodies to possess for the next year. It was believed to be their only hope for the afterlife. The Celts believed all laws of space and time were suspended during this time, allowing the spirit world to intermingle with the living.