Air pollution is a pressing issue in Delhi, with smog occurrences causing reduced visibility and various respiratory problems. A series of severe SMOG (smoke + fog) episodes between 2013 and 2017 with reduced visibility and exceptionally high PM2.5 concentrations have been reported in Delhi especially around Diwali festival (October–November). The Smog of 2016 is referred as Great Smog of Delhi. This study examined remote sensing data from 2013 to 2017 to investigate smog episodes in Delhi during pre-Diwali, post-Diwali, and Diwali. Satellite-derived parameters viz absorbing aerosol index (AAI), aerosol optical depth (AOD), and ozone monitoring instrument (OMI) along with air pollution data and climatic parameters were used to analyze smog episodes. The results showed that during smog episodes, AOD, AAI and PM2.5 concentrations exceeded permissible limits significantly at all stations across Delhi during the Diwali festival. The ground-based observations at different locations across Delhi and satellite data-derived datasets confirmed the severity of smog episodes. The findings indicate that burning of fire crackers coupled with agriculture stubble burning and subsequent transport of the smoke from North Western states through the Capital had a greater impact on deteriorating air quality in Delhi than local pollution, especially during unfavorable weather conditions associated with high humidity and weaker winds. The outcomes highlight the significance of remotely sensed information in identifying smog episodes and their severity in Delhi. It also underlines the necessity for efficient interventions to control air pollution, particularly amid festivals like Diwali.