Top 10 U.S. Towns That Come Alive During the Holidays

It's the season for people to haul out their holiday finest, but some places really know how to pull out all the stops.

While big cities like New York, Chicago, and Washington, DC, are known for their magnificent decorations, lavish spectacles, and holiday markets, there are so many other small celebrations all over the United States that breathe their own special magic and wonder into the spirit of the season.

With that in mind we went in search of some of the most festive holiday towns in America. You know, the ones that not only serve up a hefty helping of twinkle lights and hot cocoa, but truly know how to turn December into the most wonderful time of the year.

Pretty sure even Santa would approve of our top 10 Christmas-town nice list!

Portsmouth, NH

If a historic New England holiday is your style, then the seaside town of Portsmouth, NH, will light you up!

Highlights of its Vintage Christmas celebration include an annual Candlelight Stroll at Strawberry Banke Museum where you can explore 350-plus years of seasonal and holiday traditions surrounded by costumed role-players and hundreds of lanterns illuminating the historic Puddle Dock neighborhood. Tours of decorated furnished homes from 1795 to the 1950s are also available. And that's just the start of the celebratory activities in the area.

"Portsmouth at Christmastime? Literally irresistible. If you want to feel like you’ve stepped straight into a Christmas rom-com, this is your set piece," says Carla Gericke, a New Hampshire agent with Porcupine Real Estate.

"The cobblestone streets, the golden glow of lights strung overhead, the giant Christmas trees in Market Square, the artisanal shops dressed to the nines, the restaurants humming with live jazz and fresh oysters—it all conspires to charm you."

Leavenworth, WA

Nestled in the Cascade Mountains of central Washington state, Leavenworth feels like you've stepped into a Bavarian snow globe when visiting during the holidays.

While the German-inspired small town is charming year-round, it's during Leavenworth's Christmastown Festivities that things reach their peak. With over half a million lights glistening in the snow from 6 a.m. to 11 p.m. daily, there is also a Christkindlmarkt, strolling carolers, holiday concerts, a gingerbread house exhibition, and regular appearances of Santa, Mrs. Claus, and even Rudolph.

Think Bavarian Alps, but in the Pacific Northwest.

Bethlehem, PA

It wouldn't be Christmas without "O Little Town of Bethlehem"—Pennsylvania, that is.

Named Bethlehem on Christmas Eve in 1741, and recognized since 1937 as "Christmas City USA," this town in the Lehigh Valley region of eastern Pennsylvania literally breathes holiday spirit.

Capitalizing on its innate festive energy, the entire month of December becomes "A Bethlehem Christmas" celebration with Christmas carriage rides in the historic section, a daily live Advent calendar, lantern-led Christmas City Strolls with a guide in 18th-century Colonial attire, plus a Christkindlmarkt and a Christmas City Village. It all makes wondering and wandering in Bethlehem perfectly wintry.

Solvang, CA

If you like the idea of a hygge holiday, then you'll want to visit Solvang, CA, in December.

Known as "The Danish Capital of America" thanks to some early area settlers from Denmark, this little town located about 45 minutes from Santa Barbara, CA, embodies the "cozy and content" part of Copenhagen's winter culture.

And come Christmastime, things get even more convivial thanks to Solvang's Julefest—a monthlong Danish-style holiday event that features Santa's village, parades, a nightly music and light show, trolley rides, caroling, and an open-air maker's market (featuring artisan crafts and food vendors for unique gifts and sweets). There's also a citywide scavenger hunt to find hidden "Nisser" (Danish gnomes).

Oh, and did we mention Solvang is in California wine country. That fact feels like a holiday bonus.

Santa Fe, NM

For a taste of Southwest meets Santa, head to Santa Fe, NM, for some seasonal spice.

This artsy town in New Mexico offers a melange of Spanish, Native American, and Old West traditions during the holidays. Highlights include a Winter Spanish Market showcasing the work of local Hispanic artists, holiday Flamenco dance performances, and midnight mass at the Cathedral Basilica of St. Francis de Assisi.

Perhaps the most magical event is the Canyon Road Farolito Walk on Christmas Eve when thousands of farolitos (sand-filled paper bags holding lit votive candles) illuminate the courtyards, gardens, and adobe walls of the historic downtown.

And lest you think a Christmas in Santa Fe won't be white, keep in mind that juxtaposing the pink adobe is the Sangre de Cristo mountains where Ski Santa Fe offers plenty of powder for advanced skiers and snow bunnies alike.

Carmel, IN

Carmel's Christkindlmarkt is consistently rated one of the best Christmas markets in the U.S. with 50-plus huts selling goods imported from Germany, a slew of events including a Kinderecke with crafts and music for the little ones, and a 33-foot Glühwein (mulled wine) pyramid serving over 10 varieties of warm drinks for the adults. It's giving European Christmas market, no passport required.

Carmel also features a holiday trolley to transport shoppers (and sometimes Santa), ice skating, and a magical outdoor walkway of lights and decorations along the Magnificent Monon Greenway through the heart of the city.

Branson, MO

Branson, MO, is a showy town no matter the season, but the "Live Entertainment Capital of the World" levels up its seasonal spectacle during the holidays.

Not only are there a bevy of Christmas shows from which to choose—including Hot Rods & High Heels 1950s Christmas, The Haygoods' Christmas Show, and Showboat Branson Belle Christmas Cruises—but the entire Ozark Mountain Christmas celebration is rich with festive events. There are multiple drive-through light shows, visitors can ice skate under the Branson Ferris Wheel (which is also decked in holiday lights), and there's an actual Polar Express Train Ride on the Branson Train.

There are also 1,500 Christmas trees scattered around town (it's known as "America's Christmas Tree City" during the holidays), and a quick trip to Silver Dollar City, an 1880s mining-town theme park, will have you surrounded by 6.5 million twinkling lights, an Old Time Christmas, and a rollercoaster or two.

Helen, GA

Once a logging town on the Chattahoochee River, Helen, GA, fully repurposed itself in the 1960s as a Bavarian-style getaway in the Blue Ridge Mountains.

While Oktoberfest is unsurprisingly huge in Helen thanks to its heavy German influence, the holidays shine just as bright thanks to the town's fully decorated gingerbread-style buildings, Helen's Christmas Market, and the annual "Lighting of the Village" that brings it all to shimmering life.

Though the population of Helen is only around 531 people, this Appalachian alpine destination attracts as many as 3 million visitors per year (the third most visited destination in Georgia) thanks to its German-inspired architecture, restaurants, shops, and traditions.

Fredericksburg, TX

Want your Tannenbaum with a side of twang? Then head on down to Fredericksburg, TX.

With a strong blend of German heritage in Texas Hill Country, this town goes full-out festive every holiday season. The main event is the Christmas Nights of Lights that happens every evening at 6 p.m., beginning with holiday music and an audio presentation about the area's Germanic roots followed by a countdown to the lighting of the Marktplatz (which includes a giant authentic German pyramid as a focal point).

Once the "switch has been flipped," and the 30-foot community Christmas tree is fully illuminated, visitors can wander through the town or partake in a host of unique holiday experiences in the area like a "Blow your own Christmas ornament glass-blowing workshop," Christmas movie night on the lawn, or even a "Holiday Cookie and Wine Pairing" event. It's Christmas with a little bit of country.

Breckenridge, CO

Ski towns and the holidays are a match made in heaven, but Breckenridge, CO, stands out for a few reasons when it comes to serving up seasonal cheer.

Not only was this town the location for pivotal scenes in the Chevy Chase classic "Christmas Vacation," (making it a nostalgic place to visit for fans of the film), it also becomes a winter fun-derland come December.

There are, of course, tons of twinkling lights thanks to the Lighting of Breckenridge which includes 11.2 miles of illumination that will glow in the snow. But there are also entertaining events like the annual Holiday Dog Parade and the Race of the Santas, during which hundreds of dressed up Santas sprint down Main Street.

Breckenridge is also the site of the Ullr Fest, where locals and visitors don Viking helmets and march through town praising the Norse God of Snow in the hopes of a powder-filled ski season. That event ends with a bonfire and an attempt at breaking its own record for the World's Longest Shot Ski (over 1,401 people took a shot on 503 skis equaling 2,477 feet in length last year to take the title).

Throw in opportunities for snowmobiling, dog sledding, snowshoeing, and of course, après ski, and "Breck" becomes the kind of place where ho-ho-holiday dreams become festive realities.