I created this colorful lantern using some Neopixel LEDs from Adafruit. In terms of electronics, this is a very simple project. It is just an Arduino-compatible microcontroller (I used an Adafruit Trinket) and 12 Neopixel LEDs (also from Adafruit).
The LEDs are mounted on some cardstock and connected together with breadboard female-female jumper cables. The lantern is also lined with some paper so that there is a diffuse effect. The Neopixels are painfully bright without this.
The lights are put inside the lantern at a 45 degree angle so they are as far away as possible from the glass, otherwise the lights appear as bright dots.
There is a small circuit board with the microcontroller, a 5V power regulator, and a resistor. This balances on top of the lights.
Next, I need to fix a 9V battery holder onto the lid and then the project is complete. The total cost of this project was around $50.