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Home » Ultimate Guide to Celebrating Christmas and New Year in Iceland
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Ultimate Guide to Celebrating Christmas and New Year in Iceland

Denmark ReviewBy Denmark ReviewDecember 15, 2025No Comments6 Mins Read
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Ultimate Guide to Celebrating Christmas and New Year in Iceland
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Iceland truly transforms into a winter wonderland during the Christmas and New Year season, radiating a charm that captivates both locals and visitors alike. The streets twinkle with festive lights, illuminating some of the darkest days of the year, while vibrant fireworks light up the skies on New Year’s Eve. Add to this the breathtaking Northern Lights, stunning blue ice caves, and pristine snowy landscapes, and it’s easy to see why this is regarded as one of the most enchanting times to experience Iceland.

What to Expect During Christmas & New Year in Iceland

Holiday celebrations in Iceland brim with festive lights, traditional Yule Lads, and magical winter scenery. Visitors can anticipate mild winter temperatures, just four hours of daylight, and unforgettable festivities, particularly in Reykjavík, where ice skating, fireworks, and exquisite holiday meals create an atmosphere of joy and celebration.

How Short Are Iceland’s Winter Days?

While the days may be brief, they are anything but ordinary. The winter solstice on December 21st ushers in the shortest day, with sunlight gracing Reykjavík for a mere four hours. The sun rises around 11:23 AM and sets by 3:30 PM. Yet, this limited illumination has its own distinct advantages.

The low-hanging sun casts a golden glow that lingers throughout the day, creating a dreamlike atmosphere for photographers and adventurers. Even with these shorter days, there’s ample daylight for exploration, and the enveloping darkness enhances the thrill of chasing the Northern Lights. The delightful Christmas lights adorning houses and streets transform the nighttime into a magical spectacle rather than a drawback.

What About Iceland’s Winter Weather?

Icelandic winters are notoriously unpredictable. One moment, snowstorms may blanket the landscape, and the next, bright sunshine may break through. Despite this volatility, temperatures remain surprisingly mild for such a northern locale, hovering around 0 °C (32 °F). The weather, with its occasional drops to -10 °C (14 °F), keeps you on your toes, offering a dynamic backdrop to your winter adventure, whether it’s snow-dusted vistas or fleeting rainbows.

Icelandic Christmas Traditions
Meet the Yule Lads

The festive spirit in Iceland stretches over 26 days, commencing on December 11th with the arrival of the Yule Lads. These 13 playful figures descend from the mountains, each bringing a distinct personality and quirky traits. They leave treats in the shoes of well-behaved children placed on windowsills— a delightful tradition that injects a sense of whimsy into the season.

With names like Stekkjastaur (Sheepfold Stick) and Hurðaskellir (Door Slammer), the Yule Lads’ antics add a layer of fun for families. To dive deeper into this rich folklore, a visit to the Christmas Creatures exhibit at Reykjavík City Hall is an absolute must. This immersive experience brings Iceland’s holiday legends to life, enchanting families and folklore enthusiasts alike.

Reykjavík, the Christmas City

In December, Reykjavík transforms into a festive paradise, with the city center glowing with holiday spirit. An ice-skating rink at Ingólfstorg Square invites visitors to glide across the ice while sipping on mulled wine or hot cocoa from nearby vendors. For a taste of Icelandic customs, the Árbær Open Air Museum offers a chance to engage in traditional crafts like candle making and laufabrauð (leaf bread) cutting— all amidst occasional surprise visits from the Yule Lads!

Þorláksmessa: A Unique Icelandic Celebration

December 23rd marks Þorláksmessa, a day dedicated to last-minute shopping and enjoying fermented skate, known locally as “skata.” This traditional dish, while notorious for its strong ammonia scent, is embraced by many and signals the last-minute hustle and bustle in town as families prepare for Christmas.

Christmas Eve: Iceland’s Main Event

Christmas Eve stands as the pinnacle of Icelandic holiday celebrations. Families come together for a cozy dinner featuring traditional dishes like smoked lamb (hangikjöt) or ptarmigan. At 6:00 PM, church bells ring out, heralding the official start of Christmas, followed by a delightful evening of gift exchanges and cherished family moments. Among the favored gifts are books, a nod to Iceland’s beloved tradition of “Jólabókaflóð” (Christmas Book Flood)— a fine way to enjoy a quiet evening as snowflakes dance outside.

Explore Iceland’s Winter Wonders

Utilize your winter break to uncover the breathtaking landscapes Iceland has to offer. Hidden Iceland’s selection of private day tours promises unforgettable experiences— from geothermal wonders to frozen waterfalls, and of course, chasing the elusive Northern Lights.

Our meticulously curated multi-day adventures not only include premium accommodations but also tailor-made itineraries that showcase the best of Icelandic life, whether it’s immersing in the thrill of ice caving, geothermal baths, or those mesmerizing Northern Lights. Whether you’re planning a romantic escape or a family holiday, our expert guides ensure seamless experiences so you can savor every moment of your Icelandic Christmas journey.

New Year’s Eve in Iceland

As the clock winds down on the final day of the year, New Year’s Eve in Iceland bursts with energy and excitement. The evening typically begins with intimate family dinners, followed by community gatherings around bonfires (“brennur”) where locals mingle and celebrate. At 10:30 PM, nearly every Icelander tunes into the satirical Áramótaskaup, a beloved tradition that humorously reviews the year’s events. Once the show concludes, the sky erupts in a dazzling display of fireworks, lighting up the night and marking the arrival of the New Year.

For the most breathtaking views, head to Hallgrímskirkja Church or Tjörnin Pond. The proceeds from firework sales support the Icelandic Association for Search and Rescue, allowing you to join in the celebrations while contributing to a worthy cause. New Year’s in Reykjavík isn’t just a celebration; it’s an experience steeped in warmth—explore charming Christmas markets, glide across ice skating rinks, and soak in the lively atmosphere of local bars and eateries along the way.

Festive Dining in Reykjavík

No holiday itinerary in Iceland would be complete without indulging in some of the country’s finest dining establishments. However, given the popularity, reservations at Reykjavík’s top restaurants are a must, as they fill quickly during this festive season. Many venues showcase special holiday menus featuring traditional Icelandic delicacies with a seasonal twist. Some remarkable spots to consider include:

  • Tides: Pamper yourself with exquisite dinner offerings complemented by festive cocktails at their rooftop bar.
  • Sumac Grill + Drinks: A delightful fusion of Icelandic ingredients with flavors from Morocco and Lebanon.
  • Fiskmarkaðurinn (Fish Market): Relish exceptional set menus available for Christmas and exclusive options for New Year’s Eve, highlighting the finest of Icelandic seafood.

With this guide to Christmas and New Year’s in Iceland, you’re one step closer to experiencing the season’s enchanting offerings. Should you wish to explore the captivating beauty of Iceland during the holidays or ring in the New Year in style, connect with us today at +354-770-5733 or drop us a line at info@hiddeniceland.is.

Let’s begin planning your extraordinary Icelandic holiday adventure!

Hello, I’m Dagný Björg, Hidden Iceland’s CEO and co-owner. A Reykjavík native and adventure enthusiast, I remain deeply connected to the awe-inspiring landscapes of my homeland, a passion ignited from childhood summers spent camping across this remarkable country. Today, I channel that love into crafting exceptional itineraries that showcase the true essence of Iceland.

If you’re interested in discovering more, take a moment to explore our Iceland winter itineraries and luxury tours!

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