Hanuman dancing on Ravana’s head happened on the first day of the battle between Ram and Ravana in the Ramayana. When the first day of battle was about to end, Ravana appeared on the highest tower in Lanka. Ravan was disappointed to find his troops retreating defeated at the hands of monkeys and bears.
Hanuman, who happened to see Ravana standing on the tower, took a giant leap and landed on the demon king’s head.
Hanuman then began dancing on the ten heads of Ravana. He began kicking down the crowns of Ravan.
The entire Rakshasa army was in a state shock seeing this dishonorable act. Rakshasas (demons) put down their head in shame.
The vanaras (monkeys) and balukas (bears) were amused by this act and started roaring in approval.
Hanuman dancing on Ravana’s head is not part of Valmiki Ramayan but is mentioned as Hanuman’s heroics in many texts.
Dancing on Ravana’s head was an attempt by Hanuman to put psychological pressure on the powerful demons. It did work very well. Soon self doubt crept among the demons and there was total disarray and lack of confidence. This was exploited by the Vanaras and Balukas.