The Best Christmas Towns in the Midwest

Visit Santa at the Midwestern Christmas town of Cedarburg, Wisconsin. Photo courtesy of cedarburgfestival.org
Visit Santa at the Midwestern Christmas town of Cedarburg, Wisconsin. Photo courtesy of cedarburgfestival.org
11/2/25 - By Lauren LaRoche

Parents in the Chicago area looking for magical, over-the-top holiday destinations within driving distance - look no further. Transport your family to an idyllic Christmas town right out of A Christmas Carol. With cobblestone streets and picturesque brick storefronts, a visit to a Christmas town is a magical place to Christmas shop, visit Santa, and get into the holiday spirit. From Santa Claus, Indiana to Duluth, Minnesota, we’ve rounded up the best Christmas towns in the Midwest for shopping, sleigh rides, Santa sightings, Christmas caroling, tree lightings, and more. 

For a full list of Christmas towns across the country, check out the Top Christmas Towns and Villages to Visit in the U.S. And for more holiday ideas, check out our Guide to Holiday and Christmas Activities for Chicago Families.

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Why These Holiday Getaways are Worth the Trip

Chicago may be one of the best cities in the U.S. for getting a white Christmas, but sometimes you're looking for old-school charm, kitschy decorations, or even just to get out of the city for a few nights. These fun destinations create a winter wonderland for Chicago families who are looking for something different (besides the fresh Christmas tree scent in Santa's L cars). Make a day or a whole weekend out of one of these Christmas towns in the Midwest.

Insider Tips for Visiting Christmas Hotels & Towns with Kids

  • Arrive before dusk for parking & exploring — this probably means on a Saturday morning or during winter break since the sun goes down at 4:20 in December.

  • Dress for cold and bring hand warmers. Layers are always a good idea in the Midwest.

  • Check event calendars for parades & tree lightings

  • Book hotels early

  • Make it a tradition — new town each year

    • Combine day trips with an overnight for extra magic

    Festive Hotels Near Chicago

    Swissotel Chicago

    Go on an elf-guided tour of the Santa Suite at this hotel with amazing views near where the Chicago River runs into Lake Michigan. Go during Santa Days to write a letter, make crafts, and have your face painted, or book the holiday tradition package, which includes a 50-minute private booking with the man in red, cookie decorating, a hot cocoa bar, holiday treats, a bottle of champagne for the grown-ups, and a donation to One Family Illinois.

    The Peninsula Hotel Chicago

    This ultra luxury hotel goes beyond decorations. Starting November 28th, it transforms with a rooftop skating rink, lobby candy shop, and afternoon tea. You can even book family packages in the hotel rooms which include in-room trees or menorahs and holiday games and movies inside the rooms.

    Palmer House, a Hilton Hotel

    This historic hotel has a 24-foot Christmas tree lit in an extravagant ceremony around Thanksgiving each year. It's Victorian beauty is brought out in the fancy decorations. Plus, you can enjoy the signature Palmer House Brownie, along with a menu of other delicious brownies, throughout the month of December. Check out Tuba Christmas and other holiday events in and around the hotel.

    The Langham Hotel

    Enjoy the tree-lighting to kick off the holiday season at this high end downtown hotel. Then, continue the festivities throughout the season with lots of seasonal events like visits with Santa, holiday movie screenings in the cinema suite, cookie decorating, story time, and afternoon tea for tots. Grown-ups can even get holiday-themed spa treatments.

    Four Seasons Chicago

    This nostalgic and chic Mag Mile hotel has fantastic decor throughout. You can also opt for miniature trees, cookie decorating kits, or festive pastries delivered to your room by special messengers. There's dive-in holiday movies at the spa, or guests can enjoy a holiday teddy bear tea where they can make their own teddy bears. Don't forget to enjoy a meal at the indulgent Adorn restaurant.

    Indiana Christmas Towns

    Santa Claus, Indiana

    When it comes to Christmas towns, it can’t get any more iconic than the town named after the big man himself. Santa Claus, Indiana is home to a year-round Christmas town. In the three weeks leading up to Christmas, the town kicks off its yearly Santa Claus Christmas Celebration. In addition to the giant 22-foot Santa statue, you’ll also find over 15 other statues of Mr. Claus. Santa Claus is also home to the iconic Santa’s Candy Castle, countless gift shops and bakeries, a drive-thru LED Christmas light display, and more. Visit the Santa Claus Museum and Village any time of year to learn more about the man in red and write a letter to Santa. There's even more fun to be had at Holiday World & Splashin' Safari, a holiday theme park in the town.

     "Dedicated to the Children of the World" - One of the many statues in Santa Claus, Indiana

    Michigan Christmas Towns

    Manistee, Michigan

    Manistee is an idyllic Christmas town located in Northwest Michigan. This old-world town features adorable brick storefronts, brightly light Christmas trees, and an impressive Christmas festival that takes place the first weekend in December every year. Manistee’s Victorian Sleighbell Parade and Old Christmas Weekend boasts over 10,000 visitors from all over the country. You’ll find a parade of Belgian Draft sleigh horses, carolers in period costumes, Christmas concerts, holiday cookies, a Jingle Bell 5k, carriage rides, and more. 


    Manistee, Michigan, a Christmas town in the Midwest - photo courtesy of the Manistee Sleighbell Parade, Facebook

    Frankenmuth, Michigan

    Frankenmuth, Michigan is known as Little Bavaria. Named by TIME as one of the most Christmassy towns in America, you can feel the Christmas spirit everywhere you look. From the world’s largest Christmas store (Bonners Christmas Wonderland) to taking a horse-drawn carriage down Main Street, you’ll find Christmas magic at every turn. At night, head back to Bonners for a half-mile LED twinkle light display known as 25 Christmas Lane. From the covered wooden bridge to the Bavarian-style architecture, your kids will feel like they have been transported to the North Pole. Grab some German themed foods at Bavarian Inn Restaurant or Frankenmuth Brewery.

     
    Frankenmuth, Michigan will make kids feel like they're visiting the North Pole. Photo courtesy of frankenmuth.org / metro.detroiter

    Wisconsin Christmas Towns

    Cedarburg, Wisconsin

    The town of Cedarburg, Wisconsin looks straight out of a Christmas card. Located about 20 miles north of Milwaukee, you’ll find quaint brick shops, covered bridges, cozy cafes, and charming historic buildings. Their Cedarburg Christmas festival runs from mid-November through Christmas. You’ll find Festive Friday Eves, a Holiday art fair, Santa’s Workshop, seasonal entertainment, and cozy inns to call home for the weekend. Check out the 'Twas the Night Before exhibit at the Cedarburg Art Museum — it features themed rooms from the classic poem. Several restaurants throughout town, including Union House Cedarburg, The Stilt House, and 520 Social Stop have holiday themed cocktails and cookies. 

    Elkhart Lake, Wisconsin

    The Old World Christmas Market in Elkhart Lake, Wisconsin is an adorable Christmas market with something for everyone. This German market takes you back with old-world crafts, traditional German fare, hand-painted gifts, and more. Father Christmas even stops by daily so bring your camera. The market is located in the Osthoff Resort. 

    New Glarus, Wisconsin

    New Glarus, Wisconsin is an adorable Swiss town. Not only is it home to New Glarus Brewery but it’s also a quaint Christmas village. From the architecture to the storefront window displays, you’ll feel transported to Christmas in Switzerland. Enjoy holiday open houses at every shop, a St. Nicholas Day Cookie sale, the annual tree lighting ceremony, lunch with Santa, and more. The town has its own Christkindl Market:  European-inspired streetscape with handmade holiday wares for sale and holiday activities like horse drawn sleigh rides, Santa appearances, and live carolers


    Get into the holiday spirit with a trip to New Glarus, Wisconsin - photo courtesy of Swisstown.com

    Minnesota Christmas Towns

    Duluth, Minnesota

    Duluth, Minnesota is a beautiful port city located on Lake Superior. In the winter months, this chilly yet cozy town comes alive with the Christmas spirit. Right on the lakefront, you’ll find Bentleyville. This amazing Christmas village is free to walk-thru, however, there is a fee for parking. Stroll through thousands of string lights, Christmas shops, light-up arches, a massive LED tree, and more. The Christmas village runs the week before Thanksgiving through Christmas. 

     
    The Bentleyville Tour of Lights in Duluth, photo courtesy Bentleyville USA, Facebook

    Illinois Christmas Towns

    Christkindlmarket, Chicago, Illinois

    The Christkindlmarket has been a Chicago staple since 1995. Established by the German American Chamber of Commerce, this market mixes German Christmas traditions with local charms. In its Daley Center and Wrigleyville locations, you’ll find aisles of ornaments, Christmas trees, hand-painted goods, traditional German cuisine, and treats. Be sure to collect your annual Christkindlmarket mug that comes free with your wine, beer, hot cider, or hot chocolate purchase. 

     
    Christkindlmarket, Chicago - photo courtesy of Facebook

    Galena, Illinois

    Galena is one of those picturesque cities that gives all the holiday feels. During the holiday season, you’ll find beautiful Christmas window displays, tree-lined streets, festive twinkle lights, and tons of holiday shopping. The quaint gift shops are filled with holiday treasures for everyone on your list. While in town, there are also plenty of places to go skiing, sledding, and snowshoeing. Enjoy holiday events like the Ugly Sweater Food Tour, Luminaria lighting and dinner, breakfast with Santa, and a sweet stroll. And check out our other favorite things to do in Galena while you're there. 

     
    The Inn at Irish Hollow, courtesy of visitgalena.org

    Ohio Christmas Towns

    Cleveland, Ohio

    Cleveland, Ohio brings their Christmas A-game. Would you expect anything less from the iconic home of A Christmas Story? While the Christmas Story House & Museum is open year-round, the holiday season makes it even more festive. See where Ralphie donned his famous bunny suit, other costumes, and behind-the-scenes photos from the film. In addition to the museum, you’ll find a drive-through holiday lights show at the Cleveland Zoo, and WinterLand  in the city center.  There's even a holiday-themed escape room!


    The Christmas Story House Museum, photo by Kevin Messner

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    About the Author

    Lauren LaRoche
    Lauren LaRoche has been a working writer and journalist for more than 12 years. When she’s not writing, she and her husband are chasing after their dog and three children in Chicago. Her career includes work in marketing, in graphic design, and as a lifestyle and events editor for CBS Chicago. To check out more of her writing, visit her website at ldesignchicago.com.