The cocktail dress evolved post World War I as a party dress that fits somewhere between an everyday dress and a ball gown. As hemlines rose, so did a new lifestyle that involved nightclubs, parties and other special events that required something dressier than the afternoon dress, but less formal than a full-length ballgown. Some say cocktail dresses should fall just below the knee, but today there are many options, and you can wear whatever length pulls off the look you want and makes you feel the most comfortable.
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