Responding to this issue, Sheikh Muhammad Al-Mukhtar Al-Shinqiti says:

“The `Eid is a day of both thankfulness to Allah and entertainment. Some entertainments are accepted on that day more than any day. The hadith states that Abu Bakr came to the house of Prophet Muhammad (peace and blessings be upon him) and saw two slave servants who were singing and he reproached them for their act, while Prophet Muhammad (peace and blessings be upon him) said: “Leave them as today is a day of `Eid.”

Therefore, if no men are around, then there is no sin for women to get together and have fun singing together, and dance but not in such a way that provokes sexual desires. They are also required to dress conservatively and not to show their `awrah in front of ladies.”