Best Christmas & New Year's Packages & Tours in Iceland — Largest Selection & Cheapest Prices Guaranteed

Embrace the festive enchantment of Christmas in Iceland with unforgettable 2025 holiday packages designed to showcase the winter magic. From snow-dusted landscapes and charming Christmas markets to mesmerizing fireworks displays, an Iceland Christmas trip offers a truly dazzling adventure.

Celebrate the Holidays in Iceland: A Season of Magic and Light

Christmas and New Year's in Iceland are nothing short of magical, offering a festive atmosphere unlike anywhere else in the world. The entire country sparkles with Christmas lights, transforming streets, houses, and even remote farms into glowing winter wonderlands. Reykjavik’s Christmas markets, which seem to grow larger each year, are a must-visit. The Austurvollur and Ingolfstorg Christmas markets in the city center are filled with twinkling lights, cozy wooden stalls, and the scent of roasted almonds and hot chocolate in the air. Meanwhile, Hafnarfjordur’s Christmas village offers a charming, storybook setting with live music, horse-drawn carriage rides, and plenty of handcrafted Icelandic gifts.

As the holiday season reaches its peak, the New Year’s Eve fireworks are some of the most spectacular in the world. Everyone takes part—setting the sky alight with explosions of color. The most popular viewing spots, such as Hallgrimskirkja church, provide panoramic views of Reykjavik’s skyline as it bursts with light in every direction. Adding to the excitement, the city hosts bonfires across town, where locals and visitors gather to welcome the new year in a warm, communal atmosphere.

Don't Miss Christmas Northern Lights in Iceland 2025

One of the most awe-inspiring experiences of a Christmas trip to Iceland is witnessing the northern lights illuminate the night sky. In 2025, this natural phenomenon will be particularly extravagant due to the solar maximum—a peak in the sun's 11-year solar cycle, resulting in increased solar activity. This heightened activity makes the aurora borealis more vibrant and frequent, providing a rare opportunity to see ethereal displays of light dancing across Iceland’s dark winter skies.

With very long winter nights and minimal light pollution in rural areas, Iceland offers some of the best conditions for viewing the northern lights during the 2025 holiday season. Whether you stay in a snug countryside lodge or join a guided tour to remote locations, the chance to behold this celestial event is unforgettable. Christmas in Iceland 2025 will truly be a magical experience under the most extraordinary skies.

For the best opportunities to see the aurora, booking a northern lights tour in Iceland is essential. Whether by bus, boat, or super jeep, these tours provide transportation and expert guides to maximize your chances of observing this ethereal natural phenomenon. 

• The Northern Lights Tour from Reykjavik: Embark on a guided bus tour from Reykjavik to optimal viewing locations, with expert guides increasing your chances of witnessing the aurora borealis.
• Northern Lights Tour with Photos: Enjoy a small-group experience with complimentary photos, led by knowledgeable guides who provide insights into the northern lights.
• The Northern Lights Super Jeep Tour with Photos: Travel off the beaten path in a super jeep to secluded spots away from light pollution, enhancing the likelihood of a spectacular aurora sighting.
• The Northern Lights Bus Tour from Reykjavik: Journey into Iceland's countryside, offering optimal viewing spots and a free rebooking policy if the aurora isn't visible.
• The Northern Lights Boat Cruise from Reykjavik: Set sail from Reykjavik’s Old Harbor into Faxafloi bay, escaping city lights for a serene aurora viewing experience on the open water.

Top Iceland Christmas Self-Drive Tours

For travelers who love the freedom of exploration, self-drive tours are an ideal option. These road trips allow you to create your own schedule, providing ample time to discover Iceland’s festive charm and breathtaking winter landscapes at your own pace. In winter, renting a 4WD vehicle in Iceland is essential, as icy and rugged roads require a reliable car for safe and comfortable travel.

• 3-Day Winter Self-Drive Tour of Iceland with the Golden Circle & South Coast: Explore Iceland's hot springs and prime northern lights viewing spots.

• 4-Day Northern Lights Winter Self-Drive Tour of the Golden Circle, Glaciers & Black Sand Beaches: Adventure through the Golden Circle and South Coast, with opportunities to witness the northern lights.

• 5-Day Northern Lights Winter Self-Drive Tour with the Golden Circle & Jokulsarlon Glacier Lagoon: Discover the Blue Lagoon, Golden Circle, and South Coast at your own pace while hunting the northern lights.

• 7-Day Northern Lights Self-Drive Tour Through the Golden Circle and South Iceland: Chase the northern lights around the Golden Circle and South Coast scenic routes.

• 10-Day Northern Lights Self-Drive Tour of the Ring Road of Iceland: Experience the best of Iceland on this comprehensive Ring Road driving tour. Don't miss Akureyri's Christmas House and North Iceland's Dimmuborgir rock formations, home of Iceland's Yule Lads.

Best Iceland Christmas Vacation Packages

Curated Iceland Christmas holiday packages are perfect for those seeking a blend of guided experiences and seasonal charm. With options like northern lights hunting and glacier excursions, they offer a seamless way to enjoy the best of Iceland during the holidays.

• 4-Day Small-Group Northern Lights Winter Vacation Package with Golden Circle & South Coast: This compact tour showcases Iceland's highlights and features northern lights viewing opportunities. 

• 5-Day Christmas Vacation Package Holiday in Iceland: Experience a personalized Christmas vacation in Iceland, complete with airport transfers, accommodations, and festive activities.

• 5-Day Northern Lights Winter Vacation Package in Iceland with Ice Caving & the Blue Lagoon: Join a winter adventure tour featuring ice caving, glacier hiking, and northern lights hunting.

• 6-Day Northern Lights Adventure Package in Iceland with Ice Caving: Explore Iceland's Golden Circle, South Coast, Blue Lagoon, and a blue ice cave on a winter adventure with nightly northern lights hunting.

• One-Week Northern Lights Winter Package with Ice Caving & National Parks: Delve into a week-long winter wonderland tour, including visits to blue ice caves and national parks, with chances to see the northern lights.

• 9-Day Northern Lights Winter Vacation Package in Iceland with a Guided Ring Road Minibus Tour: Set out on an adventure around Iceland's Ring Road, combining guided tours and northern lights excursions.

• Small Group 12-Day Winter Package Tour of Iceland & Snaefellsnes Peninsula: Experience a comprehensive winter package, exploring Iceland's natural wonders and chasing the northern lights.

Best Winter Day Trips from Reykjavik

Elevate your Iceland Christmas trip with activity-packed tours. From thrilling snowmobile rides to ice cave explorations, these tours cater to every interest and level of adventure.

• The Golden Circle Tour from Reykjavik: Explore Iceland's iconic Golden Circle, including Thingvellir National Park, Geysir geothermal area, and Gullfoss waterfall, followed by a relaxing soak in the Blue Lagoon.

• Snaefellsnes Peninsula with Transfer from Reykjavik: Discover the diverse landscapes of the Snaefellsnes peninsula, featuring volcanic craters, black sand beaches, and charming fishing villages.

• South Coast Waterfalls & Glacier Lagoon Tour from Reykjavik: Journey along Iceland's stunning South Coast to witness waterfalls, black sand beaches, and the mesmerizing Jokulsarlon glacial lagoon.

• Golden Circle ​& Snowmobiling Tour from Reykjavik: Combine the classic Golden Circle attractions with an exhilarating snowmobiling adventure on Langjokull glacier.

• The Crystal Blue Ice Cave Tour in Vatnajokull Glacier: Explore the stunning blue ice caves of Vatnajokull glacier, offering a unique and unforgettable experience.

• The Skaftafell Glacier Hiking Tour: Embark on a guided glacier hike in Skaftafell, part of Vatnajokull National Park, to witness breathtaking ice formations and crevasses.

Best Iceland Geothermal Spas in Winter

Relax and rejuvenate in Iceland’s geothermal spas, a must-do experience during the chilly winter months. These warm, mineral-rich waters provide the perfect escape from the cold, often accompanied by breathtaking views of snow-covered landscapes. Many spas are located in remote areas, offering the chance to soak under the dazzling northern lights, making the experience even more magical.

• Blue Lagoon: Soak in the milky-blue waters of this iconic spa, surrounded by lava fields and offering luxurious amenities, including in-water massages.

• Sky Lagoon: Experience the infinity-edge pool overlooking the Atlantic Ocean, complemented by the rejuvenating seven-step spa ritual.

• Hvammsvik Hot Springs: Enjoy natural hot springs that blend seamlessly with the surrounding Hvalfjordur fjord, offering a tranquil and immersive spa experience.

• Secret Lagoon: Relax in one of Iceland's oldest geothermal pools, nestled in a scenic countryside setting near the Golden Circle.

• Myvatn Nature Baths: Unwind in the soothing waters of this northern gem, with panoramic views of snow-covered landscapes and active geothermal areas.

Top Reykjavik Christmas Experiences

Reykjavik, Iceland’s capital, comes alive during the holiday season with twinkling lights and festive cheer. Don’t miss these highlights:

• Christmas Markets: Stroll through outdoor Christmas markets to shop for handmade gifts, sip hot drinks, and sample Icelandic holiday treats.

• Holiday Lights: Discover the city’s illuminated streets and landmarks, including the towering Hallgrimskirkja church and avant-garde Harpa Concert Hall.

• Cultural Christmas Shows: Enjoy seasonal concerts and performances celebrating Icelandic holiday traditions.

• New Year’s Eve Fireworks: Experience Iceland’s famous fireworks displays from vantage points around Reykjavik, like Hallgrimskirkja church, Perlan hill, or Kopavogskirkja church.

Best New Year's Eve Experiences in Iceland

Ring in the New Year in Iceland with unforgettable celebrations that blend cultural traditions and natural beauty. From Reykjavik’s world-famous fireworks displays to serene northern lights excursions, Iceland offers unique experiences to make your New Year’s Eve truly extraordinary.

• New Year’s Eve Northern Lights Hunting Tour from Reykjavik: Celebrate New Year's Eve by chasing the northern lights on this special tour departing from Reykjavik.

• New Year's Eve Bonfire Tour of Reykjavik: Join locals in celebrating New Year's Eve with traditional bonfires, accompanied by music and festive cheer.

• New Year's Eve Fireworks Boat Cruise from Reykjavik Harbor: Ring in the New Year aboard a boat, enjoying panoramic views of Reykjavik's spectacular fireworks display from the water.

• New Year's Eve Walking Tour of Reykjavik: Experience Reykjavik's festive atmosphere on foot, learning about local traditions and enjoying the city's vibrant celebrations.

• New Year's Eve Morning Celebration Tour from Reykjavik: Delve into Icelandic folklore and New Year's traditions on this enchanting morning tour in Reykjavik.

• New Year's Eve Luxury Yacht Cruise with Fireworks from Reykjavik: Celebrate New Year's Eve in luxury aboard a yacht, with opportunities to witness the northern lights and Reykjavik's fireworks display.

Best Places to Stay in Iceland at Christmas

Choosing the right accommodation is essential for making your Christmas trip to Iceland truly unforgettable. Iceland offers a diverse range of places to stay, from festive city hotels and boutique guesthouses to serene countryside lodges and luxurious geothermal retreats. Whether you’re looking to immerse yourself in the holiday spirit, enjoy breathtaking natural beauty, or relax in peaceful seclusion, there’s an option to suit every traveler’s taste and budget. Since Christmas in Iceland is a popular travel period, it’s highly recommended to book your accommodations well in advance to secure your preferred location and ensure availability. 

• Accommodations in Reykjavik: The capital offers everything from boutique hotels and to cozy guesthouses decorated with holiday lights and charm. Many of Reykjavik's top hotels also offer traditional Christmas and New Year's dinners.

• Countryside Guesthouses in Iceland: Located in scenic areas like the South Coast or Snaefellsnes peninsula, offering stunning views of snow-covered landscapes and northern lights opportunities.

• Farm Stays and Cottages in Iceland: Experience authentic Icelandic traditions in a tranquil, rural setting — ideal for those seeking peace and quiet away from crowds.

Icelandic Christmas Folklore and Traditions

Icelandic Christmas is not just about twinkling lights and fireworks—it is steeped in unique folklore and traditions that make it truly one of a kind. Instead of just one Santa Claus, Iceland has the 13 Yule Lads, mischievous troll-like figures who visit children on the 13 nights leading up to Christmas, leaving treats (or potatoes for the naughty ones) in their shoes.

Their mother, the terrifying Gryla, is said to snatch up misbehaving children, while the Christmas Cat prowls around, looking for those without new clothes to wear.

On the culinary side, holiday visitors should try traditional Christmas dishes like hangikjot (smoked lamb), laufabraud (crispy leaf bread), and rich rice pudding with a hidden almond—whoever finds the almond wins a special prize! Between the festive food, unusual legends, and deep-rooted traditions, Icelandic Christmas is a mix of cozy warmth and fascinating folklore that makes celebrating the season here an unforgettable experience.

Make Your Iceland Christmas Trip Unforgettable

A trip to Iceland at Christmas is more than just a vacation; it’s an opportunity to surround yourself in the magic of the holiday season amidst some of the most stunning natural wonders on earth. From chasing the northern lights during the rare solar maximum of 2025 to exploring glittering ice caves, soaking in geothermal spas, and reveling in Reykjavik's festive cheer, Iceland offers endless ways to make your holiday extraordinary.

Whether you opt for a guided Iceland Christmas holiday package, a self-drive adventure, or a cozy countryside stay, planning your trip well in advance ensures you’ll capture the essence of this winter wonderland. Let the snowy landscapes, vibrant traditions, and breathtaking experiences of Christmas in Iceland 2025 leave you with cherished memories to last a lifetime.