Christmas and New Year’s in Iceland

When the long nights of December set in, Iceland in winter shines brighter than ever. Christmas and New Year’s in Iceland are magical times, filled with twinkling lights, folklore, cozy moments and the dancing glow of the Northern Lights.

The Holiday Spirit Starts Early

In Iceland, the festive season begins in late November when towns and villages light up with thousands of Christmas lights. Streets are decorated, shop windows glow, and Christmas markets open with local crafts, mulled wine, and treats like laufabrauð (leaf bread) and jólaglögg (Christmas punch). If the skies are clear, there’s a good chance of seeing the Northern Lights.

The 13 Yule Lads – Iceland’s Santa Squad

Iceland’s version of Santa Claus isn’t just one figure – it’s thirteen Yule Lads! These mischievous characters from Icelandic folklore visit homes starting December 12, each with a unique name and habit. Children leave a shoe on the windowsill when they go to sleep, hoping for a small gift when they wake up. Bad behavior might earn them a raw potato.

And watch out for Grýla and the Icelandic Yule Cat – a giant creature said to eat children who don’t receive new clothes for Christmas!

Christmas Eve in Iceland – A Cozy Celebration

In Iceland, the main celebration happens on December 24. Families gather in the evening for a traditional meal, often including smoked lamb (hangikjöt), roast pork, or ptarmigan with red cabbage and caramelized potatoes.

At 6 PM, church bells ring across the country to mark the official start of Christmas in Iceland. The evening is spent opening presents and enjoying quiet time with loved ones.

December 25 and 26 are public holidays. People rest, visit family and friends, and take winter walks or enjoy Iceland’s swimming pools. It’s a calm and reflective time before the New Year rush. In the countryside, the long nights bring excellent chances to see the Aurora Borealis dancing overhead.

The Perfect Winter Trip to Iceland: Northern Lights & Holiday Magic

If you’re dreaming of a winter escape that feels both peaceful and unforgettable, Iceland in December is the perfect match. Combine the joy of the holiday season with the thrill of chasing the Northern Lights.

Spend your days exploring snowy landscapes, frozen waterfalls, black lava beaches, and cozy villages lit up with Christmas lights. In the evenings, wrap up warm and head outside, the dark skies of the Icelandic countryside offer some of the best conditions in the world for spotting the aurora.

Add to that festive dinners, folklore-filled traditions, and the warm welcome of local hospitality, and you have a holiday like no other. Whether you join locals for Christmas Eve in a small village or ring in the New Year under a sky full of fireworks and stars, this is Iceland at its most magical.

New Year’s Eve in Iceland – Fireworks and Fun

New Year’s Eve in Reykjavík is unlike anywhere else. From early evening, fireworks begin lighting up the sky. At midnight, you’ll witness a truly unforgettable fireworks display – a favorite among travelers.

The reason Icelanders go all out with fireworks on New Year’s Eve is that it’s the main fundraising method for the country’s volunteer search and rescue teams.

Since Iceland has no military, the government relies on these civilian rescue squads to respond to emergencies across the country.

This has created a strong tradition where many choose to buy a little extra (or a lot) — in support of the teams. Authorities recognize and respect this tradition, even if it means Reykjavík briefly looks like it’s hosting its own private space program.

There’s also the national television comedy show, Áramótaskaupið, a much-loved year-in-review special that pokes fun at the biggest moments of the past year. While it’s airing, the streets are almost empty, most people are indoors watching it. But the moment it ends, the fun begins. People pour outside and start setting off fireworks, even though midnight hasn’t arrived yet. In Iceland, the New Year celebrations don’t wait for the clock — they start the second the last joke airs.

New Year’s Day – Starting Fresh in Iceland

January 1 is a public holiday. Most shops are closed and the atmosphere is calm. Many people head to Icelandic geothermal pools to relax and reflect. It’s the perfect way to begin the year – slowly and mindfully.

Whether you’re watching the Northern Lights, soaking in a geothermal lagoon, or walking under glittering lights in Reykjavík, the holiday season in Iceland offers a unique blend of magic and tradition.

This time of year is not just a great reason to visit – it’s one of the best ways to experience the heart of Icelandic culture.

Our Holiday Season Tours at a Glance

Looking to turn inspiration into action? These small-group tours are designed for travelers who want something real, local, and unforgettable—whether it’s Christmas under the Northern Lights or a toast to the New Year with fireworks in the Icelandic countryside.

🎄 Christmas & Northern Lights Adventure 
Celebrate Christmas the Icelandic way in South Iceland. Enjoy festive dinners, countryside traditions, and some of the best Northern Lights viewing conditions. Includes Reykjavík, the Golden Circle, and the Blue Lagoon.

🎆 New Year’s Northern Lights Adventure
Ring in the New Year with village bonfires, local traditions, and a sky lit up with fireworks. This thoughtfully designed program highlights Iceland’s winter landscapes, cultural heritage, and the natural wonder of the Northern Lights.

Traveling with Your Own Group?

All of our Christmas and New Year’s tours can be customized for private groups. Enjoy the flexibility of a tailor-made itinerary, expert local guides, and the comfort of traveling together — with all the holiday charm and Northern Lights magic included.

We show you Iceland – during the holidays.