La diversión sigue después del desfile.

In Spanish, it is very common to use the definite article with nouns, including abstract nouns like diversión. Here, la diversión refers to the fun / the festivities as a thing already understood in the situation.

Using just diversión would sound less natural in this sentence. Spanish often likes article + noun where English might simply use the noun by itself.

Sigue is the third-person singular form of seguir.

In this sentence, seguir means to continue or to go on, not to follow in the physical sense. So la diversión sigue means that the fun continues.

This is a very common use of seguir:

• La fiesta sigue. = The party continues.
• El espectáculo sigue. = The show goes on.

Because the subject is la diversión, and that noun is singular.

So the agreement is:

• la diversión = singular subject
• sigue = singular verb form

If the subject were plural, the verb would also be plural:

• Las celebraciones siguen después del desfile.

Because de + el contracts to del in Spanish.

So:

• después de el desfile ❌
• después del desfile ✅

This contraction happens almost always with de + el:

• el libro del profesor
• después del partido
• cerca del centro

The only common exception is when El is part of a proper name, such as El Escorial:

• Vengo de El Escorial.

Because después normally uses de before a noun or pronoun.

So the pattern is:

• después de + noun
• después de + infinitive
• después de + pronoun

Examples:

• después de la cena
• después de comer
• después de eso

In your sentence, del desfile is the noun phrase after después, so de is required.

Desfile is a masculine noun. In this sentence, it means parade.

Depending on context, desfile can also mean a procession or even a fashion show / runway show, but with this sentence it is naturally understood as a public parade.

The accent marks show which syllable is stressed.

• diversión is stressed on the last syllable: di-ver-SIÓN
• después is stressed on the last syllable: des-PUÉS

These written accents help with both pronunciation and spelling. They are not optional.

Yes. That is also correct.

Both seguir and continuar can express the idea of something continuing. In this sentence:

• La diversión sigue después del desfile.
• La diversión continúa después del desfile.

Both are natural, but sigue often sounds a little more everyday and conversational.

Yes. Spanish word order is often more flexible than English.

You could also say:

• Después del desfile, sigue la diversión.

That version puts more emphasis on after the parade first. The original version is still completely natural.

A simple breakdown is:

• La diversión = subject
• sigue = verb
• después del desfile = adverbial phrase of time

So the sentence is structured as:

subject + verb + time phrase

That is a very common and straightforward sentence pattern in Spanish.

No. Seguir can be used in more than one way.

Here it is used on its own:

• La diversión sigue. = The fun continues.

But it can also be followed by:

• an infinitive: Sigue llover ❌ not correct; normally sigue lloviendo
• a gerund: Sigue lloviendo. = It keeps raining.

So in your sentence, seguir works perfectly well without another verb because it means to continue by itself.