Which one is correct?
1. They were attracted by the holiday lights Olivia put on the balcony and roof.
2. They were attracted by the holiday lights Olivia had put on the balcony and roof.
(2) is better, assuming she put them there some time before they were attracted. e. "the holiday lights that Olivia had put".
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(2) is better, assuming she put them there some time before they were attracted.
In careful writing, I personally prefer to include "that", i.e. "the holiday lights that Olivia had put". However omission of "that" would be common in everyday English.
A more interesting verb than "put" could probably be found.