California’s Most Charming Small Towns for a Quiet Holiday Retreat

Looking to spend a cozy Christmas in one of California’s most charming towns? Big cities like Los Angeles and San Francisco tend to get all the hype, but the Golden State is crawling with tight-knit communities that go all out for the holidays. 

Once December arrives, many of these quaint municipalities come alive with twinkling lights, curated markets and family-friendly activities that create an uplifting spirit all season long. You’ll also find plenty of culinary events designed to delight even the most discerning of foodies. Since most of these towns are only a couple of hours away from California’s biggest cities, they offer an easy escape for locals and visitors alike. 

From Solvang’s transportive Danish village to Healdsburg’s Michelin-recognized oasis, California wine country pulls out all of the stops for the holiday season. Prefer a coastal town retreat? Carmel-by-the-Sea and Cambria are as cozy as it gets, while Nevada City’s mountainous surroundings and unique history make it a great destination for festive happenings. Whether you’re looking to partake in an annual Julefest Celebration or indulge in a seven-course Christmas feast complete with caviar and black truffles, these are the most charming small towns for a holiday retreat in California.

Coronado

Come December, San Diego’s Coronado Island becomes a hub for holiday spirit. The historic Hotel del Coronado is the heart of the city’s festive cheer, hosting a plethora of activities and events for hotel guests, locals and tourists alike. Each year, the Victorian-style icon is decorated in accordance with a new theme; for 2025, Hotel del Coronado is celebrating “A Holiday in Oz.” The main lobby Christmas tree uses golden balloons to create a “yellow brick road,” but you can also search for the seven other Wizard of Oz-themed trees scattered around the property. The Del’s beloved ice skating rink is also returning, so make sure you book your sunset slot for an unparalleled skating adventure by the sea. Most impressive, however, are the outdoor lights that outline the hotel’s entire exterior—a stunning display that can be seen when driving across the Coronado Bridge or even flying into San Diego International Airport. Other holiday highlights for the 2025 season include Nobu sushi and whiskey flights inside oceanfront whiskey barrels, s’mores in beachside igloos and nostalgic movie screenings in the sand. 

Where to Stay:
Hotel del Coronado is home to six distinct “neighborhoods,” allowing guests to find the right accommodations for their preferences and style. Those seeking a more traditional setting that pays homage to the hotel’s original roots should stay in the main Victorian building, where bright and airy rooms are complemented by Victorian-era pastels and accents. Prefer a modern, beachy setting? Shore House is the newest neighborhood, featuring an ocean-view swimming pool, premium beach access and a cozy cafe exclusive to on-site guests.  

Avalon

Trade snowy mountains for crystal clear beaches when you spend Christmas on Catalina Island. Avalon’s main streets come to life with twinkling lights and an oceanfront Christmas tree on Crescent Avenue, setting the scene for window shopping and bar hopping across the tiny town. The landmark Casino building also gets a festive upgrade with green and red lights, transforming the Mediterranean-like skyline with a festive twist. Stock up on unique gifts and stocking stuffers at the locally-owned boutiques before sitting down for dinner at Avalon Grille. If you visit during Christmas, expect a three-course meal with a seasonal apple and cranberry salad, miso-marinated snapper and a tender beef Wellington as your main course. 

Where to Stay:
Elegant Victorian-esque accommodations await at Avalon’s Mt Ada. During the holidays, festive garland and wreaths make you feel right at home in the cozy manor, which formerly served as the home of William Wrigley Jr. and his wife, Ada. For sweeping views and a more design-forward ambiance, book a room at the stunning Zane Grey Pueblo Hotel. 

Solvang

Considered one of the most “Christmassy” towns in the United States, Solvang is a Danish village with transportive windmills, aromatic pastry shops and a plethora of wine tasting rooms. Located in the Santa Ynez Valley, Solvang is around a 45-minute drive from Santa Barbara, and during the holiday season, every block lights up with sparkling decorations. Expect decorated Christmas trees in front of every business, as it’s a yearly tradition that the entire town partakes in. Don’t be surprised if a horse-drawn buggy walks by as you stroll between wineries, but during December, the main draw is Julefest. This annual celebration brings parades, open-air markets, live music and light shows to the already festive community. Need to stock up on new Christmas ornaments or decor? Head to Jul Hus, Solvang’s year-round holiday shop, before sitting down for a Michelin-recognized meal at Coast Range or The Landsby’s Mad & Vin.

Where to Stay:
Just a five-minute drive from downtown Solvang, The Genevieve is a 20-room boutique hotel that exudes Victorian-style charm, with cozy amenities like a daily wine and dessert hour. Those looking to walk everywhere and avoid the hassle of a car can book the Wine Valley Inn and Cottages—expect authentic Danish architecture and homey rooms, some of which have retro furnaces. 

Carmel-by-the-Sea

Carmel-by-the-Sea is a fairytale-like village in Monterey County known for its restaurants, wine tasting rooms, art galleries and storybook architecture. The European-esque Northern California town is festive year-round, but when the holidays hit, enjoy string lights, hanging ornaments and poinsettia-lined shops. On December 5, festivities kick off with Holidays in the Park, showcasing both Christmas tree and menorah lightings, dreidel spinning, caroling and more. Simply strolling around town and admiring the cozy atmosphere is a great way to invoke holiday cheer, but if you’re looking to spend Christmas Eve in Carmel, book dinner at two-Michelin-starred Aubergine. This special evening will feature a $365 seven-course feast, with black truffle, caviar service, Dover sole and a 100-day dry-aged ribeye. Foray is celebrating the season with a festive dinner from December 23 to 27, featuring four decadent courses with an optional wine pairing. 

Where to Stay:
L’Auberge Carmel, home to Aubergine, is a Relais & Châteaux hotel in the heart of Carmel-by-the-Sea, just a handful of blocks from the beach. For Pacific Ocean views and a slightly more secluded setting, head to La Playa Hotel and spend your evening sipping pinot noir in the peaceful garden or pay a visit to the recently restored Bud’s bar.

Healdsburg

From November 15 to December 31, Healdsburg is hosting its second annual A Season to Sparkle—a community-wide collaboration of festive food and drink offerings. Before embarking on an afternoon of wine tasting around the town’s main square, stop by beloved 100-year-old French bakery Costeaux’s to admire the state’s most extensive nutcracker collection and a pancake breakfast. On December 6, partake in the Holiday Sip & Shop as you taste your way across 15 wineries, supporting local boutiques and businesses along the way. Other happenings range from tree lighting ceremonies to 12 Days of Champagne at the Healdsburg Bubble Bar.  

Where to Stay:
Montage Healdsburg places guests in the heart of its rolling hills and on-site vineyards with stylish bungalow-style guestrooms and suites. In honor of the season, the property’s on-site Scout Field Bar is offering a Caviar Crunch special with Tsar Nicoulai caviar atop house-made oak leaf chips. Healdsburg’s newest hotel, Appellation, is another great option for couples and families seeking warm guest rooms, premier dining, and premium amenities, including a welcome bottle of wine.

Nevada City

Located about an hour away from Sacramento, Nevada City is a historic mining town with a rich history that played a critical role in California’s Gold Rush. Though snow isn’t a regular occurrence, you can still get in the spirit with a leisurely stroll through the quaint downtown area. Enjoy window shopping at the locally-owned stores or pop into Nevada City Winery, the oldest operating winery in the Sierra Foothills, for a winter flight. This adorable mountain town also hosts a Victorian Christmas on Sundays and Wednesdays in December, which has been an annual tradition since 1978. Admire costumed carolers, yuletide bites and beverages, live performances and visits from Father Christmas. 

Where to Stay:
The National Exchange Hotel is Nevada City’s premier accommodation option. Built in 1856, this sophisticated hotel boasts a vintage appeal with busy, antique decor and bespoke accents in every corner. Since there are only 38 rooms across the property, guests receive personal service and privacy as they get in the spirit of the season on Broad Street. 

Cambria

Located in San Luis Obispo, about halfway between the San Francisco Bay Area and L.A., Cambria is a tiny Central Coast gem known for its hazy coastline, locally-owned wine tasting rooms, art galleries and boutique shopping. The Cambria Christmas Market is the town’s holiday highlight, running until December 31. Warm up with a cup of hot cocoa as you explore local vendors ranging from rich chocolatiers to hand-crafted crepes. This market is also the best place to snag last-minute stocking stuffers and gifts, many of which are handmade in Cambria. As one of the state’s top holiday attractions, it’s best to reserve tickets in advance. 

Where to Stay:
White Water is a bright and airy inn situated directly above Cambria’s popular Moonstone Beach, offering stunning vistas of the beautiful beach. Each room at the laid-back property is filled with artisan furniture and decor by local purveyors, and the beachside setting is perfect for travelers hoping to enjoy morning walks along the beach or bike rides near the shore. Those who want more convenience when attending the Christmas Market can book a room at the Sea Otter Inn, which offers a shuttle service directly to Cambria Village.

Big Bear

Big Bear is only a two-hour drive from Los Angeles (and just a bit longer for those coming from San Diego), but it feels worlds away. This snowy Southern California mountain town makes you feel like you’ve landed in the North Pole during the holiday season, boasting shimmering lights in The Village, where you’ll also find Santa’s Hut and the massive village-center Christmas tree. Enjoy a morning of snowboarding or skiing before heading into The Village for gift shopping. On December 20, the German-inspired Big Bear Christkindlmarkt will take place at the Big Bear Convention Center, hosting live entertainment, games, local vendors and plenty of photo ops. Craving a little friendly competition? The annual Festival of Lights is a contest between businesses and residents to see who can create the most show-stopping light display at their home or storefront—winners are announced on December 31. There are also plenty of winter hiking trails for those who want to explore the natural beauty of the landscape.

Where to Stay:
The cozy cabins at N + P Boutique Lodge (also called Noble and Proper) offer a slice of luxury living in the middle of nature. All eight cabins are individually designed in honor of the owners’ family members, and you’ll find Parachute bedding, vintage wood-burning stoves, patterned wallpaper and bespoke furnishings in each. For a little lakeside living during the holidays, stay at Hotel Marina Riviera.  

​Observer