Thinking about visiting Iceland to celebrate Christmas? Whether you’re drawn to Icelandic folklore, cozy winter traditions, or the festive atmosphere in Reykjavík, spending Christmas in Iceland is an unforgettable experience. This guide covers everything you need to know, local customs, food, Christmas markets, travel tips and how to explore Iceland in winter with a rental car.

Spending the Christmas in Iceland like a local

Icelandic Christmas Traditions

Why Iceland Has 13 Days of Christmas?

One of the biggest surprises for visitors is discovering that Iceland doesn’t just have one Santa, it has thirteen.

The 13 Yule Lads (Jólasveinar) begin arriving from the mountains on December 12, stopping by each night until December 24.

Children leave shoes in their windows and depending on the Yule Lad’s personality, they receive either a small gift or a playful trick:

This tradition is unique to Iceland and is deeply rooted in local folklore.

Meet the 13 Icelandic Yule Lads

Each Yule Lad has a distinct name, personality and type of mischief:

  • Stekkjastaur (Sheep-Cote Clod) – Dec 12 – Annoys sheep in their sheds
  • Giljagaur (Gully Gawk) – Dec 13 – Hides in gullies and steals milk foam
  • Stúfur (Stubby) – Dec 14 – Steals food from pans
  • Þvörusleikir (Spoon Licker) – Dec 15 – Licks spoons
  • Pottaskefill (Pot Scraper) – Dec 16 – Cleans out unwashed pots
  • Askasleikir (Bowl Licker) – Dec 17 – Hides under beds and steals bowls
  • Hurðaskellir (Door Slammer) – Dec 18 – Slams doors at night
  • Skyrgámur (Skyr Gobbler) – Dec 19 – Eats skyr
  • Bjúgnakrækir (Sausage Swiper) – Dec 20 – Steals hanging sausages
  • Gluggagægir (Window Peeper) – Dec 21 – Looks through windows for things to take
  • Gáttaþefur (Door Sniffer) – Dec 22 – Smells baked goods
  • Ketkrókur (Meat Hook) – Dec 23 – Steals smoked meat
  • Kertasníkir (Candle Beggar) – Dec 24 – Steals precious candles

These stories give Christmas in Iceland a magical twist unlike anywhere else.

the 13 Yule Lads in Iceland

photo from shopicelandic

Key Christmas Dates in Iceland

Iceland celebrates Christmas over several days, longer than many other countries:

  • December 23 – St. Þorlákur’s Day
    • Families gather and traditionally eat fermented skate.
  • December 24 – Aðfangadagur (Christmas Eve)
    • The main celebration: festive dinner, opening presents, and family time.
  • December 25 & 26 – Jóladagar (Christmas Days)
    • Relaxing days spent visiting family or exploring Iceland’s winter landscapes.
  • January 6 – Þrettándinn (The Thirteenth Day)
    • Bonfires, fireworks, and saying farewell to the Yule Lads.

Icelandic local Christmas Celebrations

The Christmas season begins with Advent. Homes, streets and Reykjavík’s main squares light up with Christmas decorations during the darkest month of the year.

A beloved tradition is the Jólabókaflóð or Christmas Book Flood, exchanging books on Christmas Eve, then spending the night reading with hot chocolate.

These cozy traditions give Christmas in Iceland its warm, unmistakable charm.

The Christmas Cat: Iceland’s Legendary Holiday Creature

One of Iceland’s most unusual Christmas traditions is Jólakötturinn, the Christmas Cat. According to Icelandic folklore, this giant mythical cat roams the snowy countryside at Christmas and is said to target anyone who doesn’t receive new clothes before Christmas Eve.

This story was traditionally used to encourage people to finish their autumn work on time and to make sure children were rewarded with new garments for the holidays.

Strange, playful and uniquely Icelandic, the Christmas Cat is a perfect example of Iceland’s rich folklore and its love of slightly dark but charming holiday stories.

the Iceland Christmas cat

Christmas Food and Drink in Iceland

Traditional Icelandic Christmas Dishes

Icelandic Christmas food is warm, hearty and deeply rooted in tradition. Here are the festive dishes you’ll see most often during Christmas in Iceland:

  • Hangikjöt (Smoked Lamb)
    • A classic Icelandic Christmas dinner, served with potatoes, peas, red cabbage and béchamel sauce.
  • Laufabrauð (Leaf Bread)
    • Thin, decorative fried bread made only during Christmas, often prepared together as a family activity.
  • Rjúpa (Ptarmigan)
    • A traditional roasted bird enjoyed in many Icelandic homes on Christmas Eve.
  • Gravlax with Gravlax Sauce
    • Homemade cured salmon served with a sweet mustard-dill sauce, a popular Icelandic Christmas starter.
  • Caramel Potatoes (Brúnar Kartöflur)
    • Glazed in butter and sugar, these sweet golden potatoes are a staple on Icelandic holiday tables
  • Risalamande / Möndlugrautur (Almond Rice Pudding)
    • Served at Christmas with a hidden almond inside. Whoever finds the almond wins a small prize.

Festive Icelandic Beverages

  • Jólaglögg – Icelandic mulled wine
  • Christmas beers
  • Malt & Appelsín – the iconic Icelandic holiday drink mix
icelandic christmas dinner

Christmas Markets in Reykjavík and Nearby

Christmas markets in Reykjavík and the surrounding towns are smaller and more intimate than found in mainland Europe, but they offer a warm, authentic Icelandic atmosphere. Instead of large commercial stalls, you’ll find local food, handmade crafts, festive drinks and traditional treats, often set against snowy streets and twinkling Christmas lights.

Most Christmas markets in Reykavík are easy to visit on foot or by car, and a short drive also takes you to charming nearby markets like Hafnarfjörður and Heiðmörk. Visiting several markets is a great way to experience Icelandic Christmas traditions, enjoy seasonal food, and explore different parts of the capital area during winter.

The Iceland christmas market in Hafnarfjordur

photo from the official website

Hafnarfjörður Christmas Village

A cozy family-friendly Christmas village known for its fairy-tale atmosphere, traditional wooden huts, and strong local holiday spirit.

  • Location: Thorsplan Plaza, Hafnarfjörður (about 20 minutes from downtown Reykjavik).
  • Dates: November 17th to December 23rd.
  • Opening Times:
    • Fridays: 5:00 PM to 8:00 PM
    • Saturdays: 1:00 PM to 8:00 PM
    • Sundays: 1:00 PM to 6:00 PM
    • December 22: 5:00 PM to 8:00 PM
    • December 23: 1:00 PM to 9:00 PM
  • Highlights: Christmas treats, hot drinks, Icelandic handicrafts, horse carriage rides, live music and the Hjartasvellið ice rink..
the Ingólfstorg Christmas Market in Reykjavik downtown

photo from visit reykjavik

Ingólftorg Christmas Market

A lively city-center Christmas market built around Reykjavík’s main outdoor ice-skating rink, surrounded by festive lights and music.

  • Location: Ingólfstorg Square, downtown Reykjavik.
  • Dates: Weekends in December and the days leading up to Christmas.
  • Opening Times: Typically open from late afternoon to evening.
  • Highlights: Ice skating, food stalls, Christmas drinks and a beautifully illuminated square.

Hjartatorg Square Christmas Market

A small European-style Christmas market focused on local food, crafts and a relaxed shopping atmosphere near Reykjavík’s main shopping street.

  • Location: Hjartatorg Square, near Laugavegur.
  • Dates: December 6 to December 23
  • Opening Times: 1:00 PM to 6:00 PM
    • (Extended hours from 4:00 PM to 8:00 PM on December 22 and 23).
  • Highlights: Wooden booths, handmade gifts, hot chocolate, festive decorations and extended evening hours closer to Christmas.
Heiðmörk Christmas Market in Reykjavik iceland

photo from visit reykjavik

Heiðmörk Christmas Market

A nature-based Christmas market set in a forest just outside Reykjavík, offering a peaceful and traditional Icelandic holiday experience.

  • Location: Heiðmörk Forest
  • Dates: Weekends in December.
  • Opening Times: 12:00 PM to 5:00 PM.
  • Highlights: Natural and sustainable products, live music, readings from Icelandic authors, children’s activities and locally grown Christmas trees.

Árbær Open Air Museum Christmas Market

A traditional Christmas market that brings old Icelandic holiday customs to life in a historic outdoor setting.

  • Location: Árbær Open Air Museum, Reykjavik.
  • Dates: First three Sundays in Advent.
  • Highlights: Leaf-bread making, traditional crafts, festive foods like smoked lamb and fermented skate storytelling and live performances.

Other Christmas Activities in Iceland

  • Ice skating at Ingólfstorg
    • Enjoy outdoor ice skating in the heart of Reykjavík, surrounded by festive lights, music and Christmas market stalls.
  • Snowmobiling on glaciers
    • Experience Iceland’s winter landscapes at seed by joining a guided snowmobiling tour across vast glaciers.
  • Seeing Christmas lights around Reykjavík
    • Walk or drive around the city to admire beautifully decorated streets, homes and public squares during the holiday season.
  • Visiting ice caves
    • Explore natural ice caves with a guided tour and see incredible blue ice formations that are only accessible in winter.
  • Exploring geothermal spas
    • Relax in warm geothermal waters, from famous lagoons like the Blue Lagoon to smaller local pools, even on cold winter days.
  • Chasing the Northern Lights
    • Head outside the city to increase your chances of seeing the aurora borealis dancing Iceland’s winter skies.

Tip from Firefly✨: Don’t forget winter clothes and sturdy boots

christmas special activity in Reykjavik

photo from visit reykjavik

Practical Travel Tips for Christmas in Iceland

Planning ahead is essential when visiting Iceland during the Christmas season. December is a popular time to travel due to festive events, limited daylight and New Year’s Eve celebrations, so accommodation, restaurants and transport options can book up quickly. A little preparation goes a long way in ensuring a smooth and enjoyable Christmas trip in Iceland.

Accommodation

Hotels, guesthouses and Airbnbs fill up fast in December, especially in Reykjavík and along popular winter routes. If you´re visiting Iceland for Christmas or New Year’s Eve, it’s best to book accommodation well in advance. Many hotels offer special Christmas or winter packages and staying centrally makes it easier to enjoy Christmas markets, lights and events without long drives in winter conditions.

Dining and Shopping

December is a great time to experience Icelandic Christmas food. Many restaurants offer seasonal menus featuring traditional dishes like smoked lamb, festive desserts and holiday drinks, Reservations are highly recommended, especially on December 24 and 31, when dining options are limited and locals celebrate with family.

For shopping, Christmas markets and local stores are the best places to find unique Icelandic gifts. Look for wool sweaters (lopapeysa), locally made chocolates, books, candles and handmade crafts. Shopping hours may be shorter around the holidays, so plan ahead if you’re looking for last-minute Christmas gifts or souvenirs.

Frequently Asked Questions About Christmas in Iceland

  • Is Christmas a good time to visit Iceland?

    Yes, Christmas is a wonderful time to visit Iceland if you enjoy winter scenery, festive traditions, and a quieter travel experience. You’ll find Christmas markets, decorations, seasonal food and the chance to see the Northern Lights, all wrapped in a cozy holiday atmosphere.

  • Is everything open in Iceland during Christmas?

    Some shops, restaurants and services close early or shut in December 24 and December 25. However, many attractions, Christmas markets, museums and geothermal pools remain open with limited hours. Planning ahead is recommended.

  • What is the weather like in Iceland at Christmas?

    Christmas weather in Iceland is cold but not extreme, with temperatures usually between -5°C and 5°C (23°F to 41°F). Snow, wind, and changing conditions are common, so warm clothing and flexible plans are essential.

  • Can you see the Northern Lights during Christmas in Iceland?

    Yes, December is part of the Northern Lights season. With dark nights and clear skies, Christmas can be a great time to see the aurora borealis, especially outside Reykjavík and away from city lights.

  • Do I need to rent a car in Iceland at Christmas?

    Renting a car gives you flexibility to visit Christmas markets, explore winter landscapes and travel on your own schedule. If you plan to leave Reykjavík or chase the Northern Lights, a rental car is highly recommended.

  • What should I pack for Christmas in Iceland?

    Pack warm layers, a waterproof jacket, insulated boots with good grip, gloves, a hat and thermal clothing. A swimsuit is also useful for visiting geothermal pools and spas

  • Are Christmas markets worth visiting in Iceland?

    Yes, absolutely. Christmas markets in Reykjavík and nearby towns are small but charming, offering local food, handmade gifts, festive drinks and a relaxed holiday atmosphere that feels very local.

  • What is unique about Christmas in Iceland compared to other countries?

    Iceland’s Christmas traditions stand out thanks to the 13 Yule Lads, the Christmas Cat folklore, book-gifting traditions and extended holiday celebrations that last until January 6.

the view of winter Iceland Reykjavik

Driving in Iceland in Winter

Renting a car gives you the freedom to explore Christmas markets, Christmas lights and winter attractions at your own pace.

Essential Winter Driving Tips

  • Ensure your car has quality winter tires
  • Carry an emergency kit
  • Check weather forecasts at Vedur.is
  • Drive slowly on icy roads
  • Check road conditions at Road.is
  • Keep headlights on at all times
  • Plan routes carefully due to limited daylight

Driving in Iceland during Christmas can be safe and enjoyable with the right preparation

best Iceland seven days self drive itinerary for the first time iceland traveller

Why Rent a Car from Firefly Iceland?

Firefly Iceland offers reliable, winter-ready cars, cheap rental options and a quick pick-up at KEF airport, ideal for travelers exploring Iceland in December.

A rental car lets you discover Christmas markets, countryside Christmas lights, and natural attractions comfortably and at your own pace.

Other Winter Things to Do in Iceland

  • Plan routes to see the best Iceland Christmas lights
  • Visit festive trees and light displays across Reykjavík
  • Enjoy New Year’s fireworks
  • Try ice caving, glacier tours and winter photography
  • Chase the Northern Lights with flexible self-driving timing
Firefly Iceland is an award winning car rental company in Iceland

Conclusion

Christmas in Iceland is a magical mix of folklore, food, lights, snow and traditions you won’t find anywhere else. Whether you’re meeting the Yule Lads, browsing Christmas markets or exploring winter landscapes with a rental car, Iceland delivers a Christmas you’ll never forget.

If you’re planning your holiday trip, consider renting a car with Firefly Iceland to make your Christmas adventure flexible, fun and unforgettable.

Happy holidays, Gleðileg Jól

Best rental car for Winter Iceland road trip

TIGUAN-GREY

VW Tiguan or similar|Automatic|4×4 (IFAR) | 2022-2024

Group: OReservations are made by car category only. We cannot guarantee a specific car model. or similar

  • 5 Passengers
  • 3 Large
  • 5 Doors
  • Automatic
  • Airconditioning

Suitable for the highland F-roads. Please read Terms & Conditions.
You must be 23 years of age to drive this vehicle.

Additional Features
  • 4 Wheel Drive
  • 176 C02 g/km
  • Adjustable Steering
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
  • Fog Lamps
VITARA

Suzuki Vitara or similar|Manual| 4×4 (IFMN) | 2022-2024

Group F Reservations are made by car category only. We cannot guarantee a specific car model. or similar

  • 5 Passengers
  • 3 Large
  • 5 Doors
  • Manual
  • Airconditioning

Suitable for the highland F-roads. Please read Terms & Conditions.
You must be 23 years of age to drive this vehicle.

Additional Features
  • 4 Wheel Drive
  • Adjustable Steering
  • Cruise Control
  • Electronic Stability Control
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
DUSTER

Dacia Duster or similar |Manual| 4×4 (CFMN) -2022-2024

Group E2 Reservations are made by car category only. We cannot guarantee a specific car model.

  • 5 Passengers
  • 3 Large
  • 5 Doors
  • Manual
  • Airconditioning

Suitable for the highland F-roads. Please read Terms & Conditions.
You must be 20 years of age to drive this vehicle.

Additional Features
  • 4 Wheel Drive
  • 116 C02 g/km
  • Adjustable Steering
  • Electronic Stability Control
  • ABS
  • Power Steering
  • Power Windows
  • Remote Locking
  • Airbags
SORENTO

Kia Sorento or similar | Automatic | 4×4 (SFAN) | 2022-2024

Group: O2 Reservations are made by car category only. We cannot guarantee a specific car model.

  • 5 Passengers
  • 4 Large
  • 5 Doors
  • Automatic
  • Airconditioning

Suitable for the highland F-roads. Please read Terms & Conditions.
You must be 23 years of age to drive this vehicle.

Additional Features
  • 4 Wheel Drive
  • 164 C02 g/km
  • Adjustable Steering
  • Cruise Control
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking
PAJERO

Mitsubishi Pajero or similar | Automatic| 4×4 (FFAR) | 2022-2024

Group: I Reservations are made by car category only. We cannot guarantee a specific car model. or similar

  • 5 Passengers
  • 5 Large
  • 5 Doors
  • Automatic
  • Airconditioning

Suitable for the highland F-roads. Please read Terms & Conditions.
You must be 23 years of age to drive this vehicle.

Additional Features
  • 4 Wheel Drive
  • 213 C02 g/km
  • Adjustable Steering
  • Cruise Control
  • ABS
  • Bluetooth
  • USB
  • Power Steering
  • Power Windows
  • Remote Locking