observe vs celebrate

observe and celebrate both are verbs.

Word	Noun	Adjective	Verb	Adverb
observe	No	No	Yes	No
celebrate	No	No	Yes	No

As verbs, celebrate is a hyponym of observe; that is, celebrate is a word with a more specific, narrower meaning than observe:

Other hyponyms of observe include lionise, lionize, tolerate.

As verbs, observe and celebrate are synonyms defined as:

Other synonyms of observe include keep.

observe (verb)	celebrate (verb)
stick to correctly or closely	have a celebration
make mention of	behave as expected during of holidays or rites
watch attentively	assign great social importance to
observe with care or pay close attention to
discover or determine the existence, presence, or fact of by perception with the eyes
follow with the eyes or the mind
show respect towards
behave as expected during of holidays or rites
conform one's action or practice to