If you’re dreaming of a magical winter getaway, Christmas in Iceland is hard to beat.
Imagine snow-covered landscapes, cosy cafés, twinkling Christmas lights, festive markets and the chance of seeing the Northern Lights—all wrapped up in one unforgettable trip.
But Icelandic Christmas is also wonderfully unique.
Instead of just one Santa Claus, Iceland has 13 mischievous Yule Lads, there’s a terrifying Christmas Cat, and traditional celebrations stretch well beyond Christmas Day.
We’ve visited Iceland during the festive season ourselves, and it’s one of the most magical times of year to experience the country.
Here’s everything you need to know.
Is Christmas a Good Time to Visit Iceland?
Absolutely.
Christmas is one of the most atmospheric times to visit Iceland.
You’ll experience:
- Festive decorations throughout Reykjavík
- Christmas markets
- Cosy cafés
- Snow-covered scenery (weather permitting)
- Geothermal lagoons surrounded by winter landscapes
- Fewer daylight hours but magical sunsets
- A chance of seeing the Northern Lights
It’s perfect if you enjoy winter travel and festive traditions.
What Are the Yule Lads?
Forget Santa Claus…
In Iceland, children traditionally receive visits from 13 Yule Lads.
Beginning 13 days before Christmas, one Yule Lad arrives each night.
Each has their own personality and mischievous habits.
Some of the best-known include:
- Spoon-Licker
- Door Slammer
- Sausage Swiper
- Bowl Licker
- Skyr Gobbler
- Window Peeper
Children leave a shoe on their windowsill each night.
Well-behaved children receive a small gift.
Those who have been naughty traditionally receive… a potato!
It’s one of Iceland’s most charming festive traditions.
Meet the Christmas Cat
The Jólakötturinn, or Christmas Cat, is another famous Icelandic Christmas character.
According to folklore, this giant cat prowls the countryside on Christmas Eve looking for anyone who hasn’t received new clothes before Christmas.
Thankfully today, it’s all part of Iceland’s rich storytelling tradition and adds to the country’s festive charm.
Reykjavík at Christmas
Reykjavík transforms during December.
The city is beautifully decorated with:
- Christmas lights
- Decorated shop windows
- Festive markets
- Ice skating
- Seasonal food stalls
Walking through the city in the evening feels incredibly magical.
Some of our favourite places include:
- Rainbow Street
- Ingólfstorg Square
- Austurvöllur
- Harpa Concert Hall
Christmas Markets
One of the highlights of visiting during December is exploring Iceland’s Christmas markets.
You’ll find:
- Handmade gifts
- Icelandic crafts
- Woollen clothing
- Local food
- Christmas decorations
- Festive drinks
It’s a fantastic place to pick up unique souvenirs.
Icelandic Christmas Food
Christmas is a great time to try traditional Icelandic dishes.
Popular festive foods include:
- Smoked lamb (Hangikjöt)
- Leaf bread (Laufabrauð)
- Malt & Appelsín (a traditional Christmas soft drink)
- Icelandic Christmas biscuits
- Skyr desserts
Don’t forget to visit one of Reykjavík’s excellent bakeries for festive treats.
Can You See the Northern Lights?
Yes—and Christmas is one of the best times of year to try.
Long winter nights provide excellent opportunities for viewing the aurora.
Of course, sightings can never be guaranteed, but December offers some of the longest hours of darkness.
Christmas Day in Iceland
Many attractions, restaurants and supermarkets close or operate reduced hours on:
- Christmas Eve (24 December)
- Christmas Day (25 December)
- Boxing Day (26 December)
If you’re travelling during this period:
- Book restaurants well in advance.
- Buy supermarket supplies early.
- Check attraction opening times.
Planning ahead is essential.
Is Everything Covered in Snow?
Maybe.
December often brings snow, but conditions vary from year to year.
Even without heavy snowfall, Iceland still feels wonderfully festive.
Driving at Christmas
If you’re hiring a car during winter:
Expect:
- Snow
- Ice
- Strong winds
- Limited daylight
Take your time and always check the weather and road conditions before setting off.
We’ve driven in Iceland during winter and found careful planning makes all the difference.
Hire a Car for Your Winter Adventure
If you’re planning to explore beyond Reykjavík, hiring a car gives you the flexibility to discover Iceland’s winter landscapes at your own pace.
We’ve always had excellent experiences with Blue Car Rental, particularly during winter road trips.
🚗 Hire your car here:
https://www.bluecarrental.is/?affiliate=IcelandicAdventure
Or Travel by Campervan
Winter campervan travel isn’t for everyone, but it can be an unforgettable experience if you’re properly prepared.
We explored Iceland with CampEasy, and loved the flexibility of travelling wherever conditions allowed.
Book through our link and you’ll also receive an exclusive FREE Easy Start Pack.
🚐 Book your CampEasy campervan here:
https://campeasy.com/?tap_a=107011-a856e5&tap_s=8902128-1989f0
Stay Connected
Winter weather can change quickly, so having reliable mobile data is incredibly useful.
We regularly use our phones to check:
- Weather forecasts
- Road conditions
- Northern Lights forecasts
- Opening hours
We always travel with Saily eSIM, which activates before we land.
📱 Save 10% with Saily here:
https://go.saily.site/aff_c?offer_id=101&aff_id=15717
Our Christmas Packing Tips
Bring:
- Waterproof jacket
- Thermal layers
- Hat and gloves
- Waterproof boots
- Camera
- Power bank
- Swimsuit for geothermal lagoons
The weather can change quickly, so layers are essential.
Frequently Asked Questions
Is Iceland busy at Christmas?
Yes.
December is one of Iceland’s most popular travel periods, so accommodation and tours often book up well in advance.
Can you see the Northern Lights at Christmas?
Yes.
Christmas falls during one of the best seasons for Northern Lights viewing.
Are restaurants open on Christmas Day?
Some are, but many close or operate reduced hours.
Advance booking is highly recommended.
Is Christmas a good time for the Blue Lagoon and Sky Lagoon?
Absolutely.
Relaxing in warm geothermal water while surrounded by crisp winter air is an unforgettable experience.
Final Thoughts
Christmas in Iceland feels like stepping into a real-life winter storybook.
From the quirky Yule Lads and legendary Christmas Cat to festive markets, sparkling lights and the possibility of seeing the Northern Lights, it’s unlike anywhere else in the world.
Whether you’re spending a few days in Reykjavík or embarking on a winter Ring Road adventure, Iceland offers a magical festive experience you’ll never forget.
If you’re looking for a Christmas destination that’s a little different, Iceland should be right at the top of your list.
Gleðileg jól—and happy travels!
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