Music, dances, carnivals, mini-folk life festivals, and lots of fireworks this weekend will highlight the area's celebration of America's 201st birthday.

The Smithsonian Institution's Fourth of July celebration, featuring music and crafts from noon to 6 p.m. and social dancing from 6:30 to 8:30 p.m., will begin Saturday and continue through the 4th at the Museum of History and Technology.

On the Monument grounds the U.S. Army Band and the D.C. Youth Chorale will entertain from 7:30 p.m. Monday until the annual fireworks display sponsored by the National Park Service begins at 9:10 p.m.

During the day in The District 10 recreational centers will host picnics, games, barbecues and sports events. An Independence Day Parade starting at 11 a.m. will wind its way along MacArthur Boulevard and conclude at the Palisades Recreational Center. Also on Monday all large outdoor swimming pools will remain open.

Rockville will hold its 17th Annual Independence Day Celebration at Richard Montgomery High School where the Rockville Concert Band will play at 7:15 p.m. and the Bluegrass Cardinai Concert will play at 8:30. At 9:15 fireworks will be launched.

Prince George's County will be the scene of numerous activities throughout the weekend. At Becketts Field in New Carrollton there will be the 4th of July Knockout including games, carnivals, food, and entertainment from 1 to 10 p.m. The Five Cent 4th of July Celebration will be held from 1 to 5 p.m. at the Old Maryland Farm in Largo. There will be games, pony rides, and a left-handed arm wrestling competition. A minimal entrance fee will be charged.

In Clinton a parade, leaving at 10 a.m. on Monday from Surrattsville High School and going east to Clinton Shopping Center, will feature 60 marching units, games and refreshments.

In Hyattsville's Magruder Park fireworks will light the skies at 9 p.m. Monday. For further information concerning holiday activities in Prince Georges call 227-2200.

Three special programs are on tap for the 4th in Fairfax County.At Lake Fairfax Park a fireworks display lasting 45 minutes will begin at 9:30 p.m.

There will be a 19th century 4th of July celebration at Colvin Run Mill. From noon to 5 p.m. musical entertainment, crafts demonstrations, refreshments, and the greased pole and sack race competitions will take place. An admission fee of $1.50 for adults and 75 cents for children will be charged.

Ball games, rides, music, games, and picnics will be in Lee District Park on Monday from 11 a.m., ending with fireworks that start at 9 p.m.

Arlington will have a parade starting at 10 a.m. on the 4th and winding along Wilson Boulevard to Bon Air Park. At Bluemont Park a free band concert will be held at 8 p.m. and fireworks will follow at 9:15.

Alexandria's Independence Day celebration will feature a free program at T. C. Williams High School at 7 p.m. that will include entertainment by the Alexandria Pipes and Drums, the Riverside Ramblers, and the Dixieland Jazz Band, and the annual invitational 1,776-yard track race.

Most banks, businesses and government agencies will be closed Monday, but most food chains, including Giant, Safeway, and A&P will remain open.

Trash collections will be made Monday in Arlington, Fairfax, and Alexandria. In Prince George's pickups will not be made until Thursday, and in D.C. trash collections will be postponed one day.

All federal and local government offices will be closed Monday, except for emergency fire and police services. Buses and trains will operate on Sunday schedules.