Traditions, Wonder and Tailored Journeys
There are few places in the world where Christmas feels quite as magical as in Iceland. With its snow-draped landscapes, the twinkling holiday lights in Reykjavík and quirky centuries-old traditions, the season here is both intimate and exuberant. For travellers seeking an immersive yet luxurious way to celebrate the holidays, Iceland offers a rare combination: authentic festive rituals alongside extraordinary winter adventures — and let’s not forget the geothermal pools to melt into after a chilly day.
Christmas in Iceland is steeped in stories: the playful Yule Lads who appear in the 13 nights leading up to Christmas Eve, the celebration of Þorláksmessa on December 23, and New Year’s Eve marked by bonfires and likely more fireworks than you’ve ever seen ignited at one time. Visitors often find themselves enchanted by the warmth of these traditions against the dramatic winter backdrop.
With Activity Iceland’s expert guidance, travellers can experience these moments not as bystanders, but as participants — perhaps joining a candlelit service in a countryside church, dining on seasonal delicacies in Reykjavík, or toasting the New Year while staring up at the Northern Lights outside a serene coastal lodge.
Meet Iceland’s Unique Cast of Christmas Characters
Christmas in Iceland isn’t presided over by just one jolly figure in red. Instead, the season is filled with a whole cast of characters delivering magic — with a playful pinch of mischief.
First, there are the Yule Lads — 13 mischievous brothers who descend from the mountains one by one in the nights leading up to Christmas. In order of annual appearance, they are Stekkjastaur (Sheep-Cote-Clod), Giljagaur (Gully-Gawk), Stúfur (Stubby), Þvörusleikir (Spoon-Licker), Pottaskefill (Pot-Scraper), Askasleikir (Bowl-Licker), Hurðaskellir (Door-Slammer), Skyrgámur (Skyr-Gobbler), Bjúgnakrækir (Sausage-Swiper), Gluggagægir (Window-Peeper), Gáttaþefur (Doorway-Sniffer), Ketkrókur (Meat-Hook), and Kertasníkir (Candle-Stealer).
Each has a distinct personality that relates to their name, with Stekkjastaur prone to harassing the household’s sheep, Hurðaskellir disturbing your slumber by slamming doors, and Kertasníkir stealing the candles for a little snack (which was probably tastier back in the day when candles were traditionally made of tallow). The brothers are not entirely naughty, though. Each night, starting on the eve of December 12, Icelandic children leave a shoe on their windowsill in hopes of that night’s visiting Yule Lad leaving them a small gift. If the child has been naughty, however, they may find a raw potato instead.
Who could have raised such a brood of trouble-makers? Their formidable mother, Grýla, is a giantess said to live in a cave high in the mountains. Legends tell of her taste for naughty children — a tale that still keeps youngsters on their best behaviour through the long, dark winters.
And finally, there’s the most fearsome of them all: the Christmas Cat. This enormous feline is said to prowl the snowy countryside at Christmas, ready to pounce on anyone who hasn’t received new clothes as a holiday gift. Once a reminder of the importance of hard work during the autumn wool harvest, today the story is told with more humour than fear — though the thought of a gigantic cat lurking in the snow is hard to forget.
Together, these figures bring a distinctly Icelandic flavour to the holidays: a mix of folklore, fun, and just a dash of winter-night spookiness.
Experiences That Define a Premium Festive Journey
For those seeking a luxury Christmas or New Year’s holiday in Iceland, the season is ripe for extraordinary encounters. Some of the postcard perfect wintery adventures that await include:
● Northern Lights Evenings: A private guide leading you to a secluded vantage point, where the aurora dances above snowy fields.
● Glacier Adventures: Exploring luminous ice caves and frozen landscapes with expert guides, returning to a lodge warmed by firelight.
● Seasonal Gastronomy: Multi-course dinners built around Icelandic lamb, seafood, and festive desserts, paired with thoughtfully chosen wines.
● Geothermal Retreats: Soaking in a natural hot spring or design-led spa, the winter chill softened by warm waters and stillness.
● Cosy Culture: Access to festive concerts, art exhibitions, or even an intimate Icelandic choir performance.
Each journey is designed with flexibility and individuality in mind. Some travellers prefer days filled with activity — glacier hiking by day, fireworks by night — while others lean into slower rhythms, letting the holidays unfold at their own pace.
How To Make The Most Of The Holidays In Iceland
1. Explore the Highlights of South Iceland: With a private driver guide taking care of navigation, you and your fellow memory makers can soak up the passing scenery outside your private vehicle, arriving at each view point or activity stress-free and ready to go. This seven-day bespoke exploration of Iceland’s natural gems includes quiet moments taking in the majesty of Icelandic nature at Þingvellir National Park, Jökulsárlon glacier lagoon and the famed Diamond Beach; the adrenaline rush of snowmobiling on a glacier; and the pure bliss of melting into the warm, mineral-rich waters of the Blue Lagoon.
Ask your dedicated trip manager to reserve a table for a traditional Icelandic Christmas dinner, or stock your boutique countryside with some sparklers and Champagne and your winter holidays will be one to remember.
Explore the Highlights of South Iceland here.
2. Feel the City Come Alive With The Holiday Spirit: The pristine nature of the Icelandic countryside can never be called overrated — you should get out there and see it! But there’s something truly magical about the way Reykjavík comes to life over Christmastime and New Year’s Eve. Many of those Icelandic holiday characters can be spotted around town in the lead-up to Christmas, as Yule Lads are projected onto the sides of buildings and a massive black cat sits ready to pounce on Lækjartorg. It’s also at this time of year that you’re likely to stumble across choirs serenading passers by, as Ingólfstorg is transformed into an outdoor skating rink and streets are lined with Christmas market stalls selling traditional handy crafts and tasty treats.
Explore a Reykjavík Winter Escape here.
3. Chart Your Own Holiday Adventure: Those wanting to go at their own pace over the holidays won’t be disappointed by a self-drive itinerary covering the enchanting capital city as well as ice caves, geysers, waterfalls and hot springs. Travelling through West and South Iceland during the dark winter months also opens up the opportunity to venture out in search of the Northern Lights, or even request a Northern Lights wake up call from the concierge at your charming countryside accommodations.
Become an Iceland Winter Explorer here.
A Season for Reflection and Celebration
A premium festive Iceland trip is as much about atmosphere as activity. The short daylight hours encourage long meals, lingering conversations and moments of quiet reflection. If ever there was a time to embrace the ethos of slow travel, it’s during the Icelandic winter, when a warm drink or hearty bowl of kjötsúpa is nearly always within reach to cap off time spent outdoors.
Meanwhile, winter nights bring the drama, with potential spottings of the elusive Northern Lights and guaranteed sightings of fireworks even in the nights leading up to New Year’s Eve, as the locals grow eager to light up the sky.
What makes these holidays memorable is the balance: the grandeur of Iceland’s nature, the intimacy of its traditions, and the comfort of knowing that every detail is thoughtfully arranged.
For travellers seeking Christmas and New Year in Iceland with a touch of luxury, the season becomes more than a holiday — it becomes a passage into Iceland’s rhythm of winter. The landscape slows, traditions deepen, and celebrations take on a rare sense of place.
Activity Iceland designs these journeys not as packages, but as personal stories. Each itinerary is tailored, each experience chosen to reflect the traveller’s own idea of a festive season well spent. A luxury Christmas in Iceland is not about doing more — it’s about doing it differently. With the right guidance, it can be a time of wonder, warmth, and discovery, set against one of the most dramatic winter landscapes on Earth.
