The Magic of Celebrating Xmas and New Year in Iceland!

Spending Christmas and New Year in Iceland with family and friends feels like a genuine gift. The holiday season here is unlike anywhere else at this time of year! The country's festive spirit shines brightest during the darkest months, as candlelight and Christmas lights turn every corner into a warm, inviting space.

In this post, I want to share some of Iceland’s special traditions and unique charms during the festive holiday season, including visiting Christmas markets, preparing traditional foods, and my favorite activity—baking lots of cookies and laufabraud to warm up during dark and cold winter days! winter outings. All these joyful activities bring family and friends together, making this season truly special.

The Magic of Icelandic Christmas Markets

Iceland’s Christmas markets are one of the many highlights of the holiday season. Unlike large commercial fairs, these markets are often small, cozy gatherings that capture the heart of Icelandic culture. You’ll find them in towns and villages across the country, each with its own character and charm.

• Christmas Trees & Wreaths:

  In numerous markets, you can choose from a variety of Christmas trees to purchase and bring home, along with stunning wreaths adorned with Christmas decorations and candles.

• Local crafts and gifts: The stalls are filled with handmade woolen items, ceramics, jams, cookies, and other distinctive Icelandic souvenirs. They also provide the perfect opportunity to discover thoughtful gifts while supporting local artisans.

• Festive atmosphere: The markets are often lit with strings of warm lights and candles, creating a magical glow that contrasts with the long winter nights.

• Community spirit: These gatherings bring families, friends neighbors and visitors together, fostering a sense of connection and shared celebration.

Whenever I'm in Iceland for the festive season, visiting the markets feels like I'm reconnecting with a cherished tradition. The familiar scents of Christmas trees, the sight and smell of hot chocolate topped with plenty of whipped cream, or the delicious glogg (mulled wine or cider), the sound of joyful music, and the sight of people of all ages with smiling faces always remind me why this season is so meaningful.

Traditional Icelandic Christmas Foods That Unite

Food plays a central role in Icelandic Christmas celebrations. Here are some traditional favorites that include:

Hangikjöt (Smoked Lamb): This is a staple of Icelandic Christmas dinners. The lamb is smoked and often served at room temperature, accompanied by side dishes like green peas and a creamy potato sauce called uppstúfur. It is often enjoyed with slices of flatkökur – Traditional Icelandic flatbread.

Rúgbrauð: This traditioal dense rye bread, typically baked using geothermal heat, is a treat we savor all year round. However, during the Christmas holiday season, many locals particularly enjoy it with plenty of butter, topped with marinated herring... and if you're not driving, maybe a shot of Icelandic snaps!

• Fermented Skate: This dish is often considered as a delicacy, although it may not be enjoyed by everyone. One of my grandmothers always used to serve this specialty on December 23rd or for lunch on the 24th but I have to admit I never learnt to like it!!

Ptarmigan: This game bird, known for its seasonal color changes, as always been the traditional dish my family enjoyed and is still enjoying on Christmas Eve in Iceland. It is typically accompanied by caramelized potatoes and red cabbage. For me, the moment my mother began preparing these birds in the afternoon of Christmas Eve, and the house became filled with a unique wild aroma, I knew Christmas had truly begun!

This photo was taken in the summer when my brother cooked this specialty for me as that year I hadn't been in Iceland for Xmas and he had saved a few "birds" in the freezer to treat me when I would visit . . . in the summer! Here it was served with the traditional caramelized potatoes and instead of the red cabbage, a refreshing Waldorf salad that is also nice!

Laufabrauð (Leaf Bread): This is a traditional Icelandic bread made from all-purpose or rye flour that is rolled out thin and decorated with intricate patterns before being fried. It is typically served during the whole holiday season.

Jólakaka: A rich Christmas cake flavored with spices and dried fruits, often enjoyed at breakfast or with coffee throughout the Christmas week.

In my family, we often make a gingerbread cake instead of the traditional Christmas cake as seen in photo on the left.

Cookies: My Granny's butter cookies and the spiced gingerbread cookies are a popular treat during Christmas time, often decorated and enjoyed with hot drinks.

Apart from the cookies & goodies listed above . . . when it comes to our sweet tooth or for something sweet after the main Christmas Eve meal, a real family favorite is a lemon/pineapple mousse: Here is my recipe: Pineapple Lemon Mousse

Risalamande Another classic treat is a Danish Christmas dessert that I'm making this year for the whole family. This dish consists of a rice pudding mixed with vanilla, almonds, and whipped cream, and it is usually accompanied by warm or room temperature caramel or berry sauce. The photo on the right is one of my summer versions of this sweet!

Savor a cup of Glögg: This mulled wine is relished throughout the Advent and Christmas season, both indoors and often at Christmas markets or to warm up during various winter activities. I also often make bottles of this drink and give as a Xmas present to friends and family.

• Malt og Appelsín: This is a popular Icelandic Christmas drink made from a mix of malt extract and orange soda. It is sweet, fizzy, and enjoyed by both children and adults during the festive season.

Activities That Light Up the Dark Winter Days

The long winter nights in Iceland can feel endless, but the holiday season offers many ways to brighten up our days and spirits.

• Candle lighting: Candles are everywhere during Christmas, symbolizing warmth and hope. Lighting candles together is a simple yet powerful ritual.

• Christmas carols and concerts: Local choirs and musicians perform traditional songs that fill the air with festive cheer.

• Community gatherings: From church services to neighborhood parties, these events strengthen the sense of belonging.

These activities remind us that even in the darkest of times, light and joy are always within reach.

The New Year’s Celebration in Iceland

New Year's Eve in Iceland is a vibrant and unforgettable occasion. The evening is typically spent with family and friends, indulging in delicious food, music, and laughter.

After dinner, my family and I, as most locals, have a tradition of gathering around neighborhood bonfires, exchanging stories and warmth with both locals and visitors. This symbolizes bidding farewell to the old year as we prepare to greet the new one with an abundance of fireworks. In fact, Icelanders are renowned for their magnificent fireworks displays, illuminating the skies in towns and cities throughout the country.

Merry Christmas and a Happy & Healthy New Year!

See you again in 2026! Karitas