Indiana's 8 Most Festive Downtowns For The Holidays
Indiana's small towns know how to make the season bright. Across Indiana, historic main streets glow with lights, storefronts deck themselves out for the season, and the community spirit runs deep. Many of these communities, each with fewer than 50,000 residents, utilize their historic downtowns as stages for celebration, featuring festive tree lightings, holiday parades, craft-rich markets, historic buildings dressed in twinkling lights for the season, and local traditions that bring residents and visitors together. From ice skating rinks to horse-drawn carriage rides, visitors can enjoy festive traditions alongside local dining, shopping, and history in these eight small towns across the Hoosier State.
Santa Claus
The town of Santa Claus, named in the 1850s, built an entire identity around its name. The infamy of the town of Santa Claus began at the small post office when it started responding to children's letters. Families now visit Santa Claus for its friendly spirit and unusual history, which has shaped everything from the street names to the local attractions, such as the Santa Claus Museum. Holiday World & Splashin' Safari, one of Indiana's most beloved theme parks, anchors the area's festive energy and keeps the town busy well into winter.
America's Christmas Hometown Celebration kicks off the holiday season with the downtown areas illuminated by lights, holiday music, and festive events, such as driving through, the Santa Claus Land of Lights, a mile-long storybook display, visiting the 1935 historic Santa's Candy Castle for nostalgic treats like old-fashioned candy, popcorn, and over 35 flavors of hot cocoa, or stopping by the post office to see the famous holiday letter cancellations. Downtown shops, such as the Santa Claus Christmas Store and Santa's TOYS, sell handmade ornaments and toys, and families gather for Christmas parades and storytime events. Every corner glows with red, green, and the warm energy of the Christmas spirit.
Nashville
Founded as an artist colony in the early 1900s, Nashville has long attracted painters, potters, and craftspeople who built the town's creative legacy. Its tiny downtown sits amid the wooded hills of Brown County, where log buildings, such as the Old Log Jail and the Pioneer Museum, and art galleries, including the 1926 Brown County Art Gallery, line the streets. The downtown becomes even more festive when colorful lights adorn the streets and local shops.
While you are in Nashville, take a stroll along the colorfully lit East Main Street to browse galleries like the Brown County Art Gallery to view regional artwork. Shop at Head Over Heels, a hat and footwear boutique very rooted in Nashville's style: they carry Stetsons, Merrell, and even Minnetonka moccasins. Stop in for cocoa at the Ooey Gooey Cinnamon Rolls & Café after taking a carriage ride through town. Holiday Lights Parade, craft fairs, and musical performances round out the holiday calendar, blending small-town charm with artistic flair. In the evening, Nashville's lights reflect off the hillsides, giving the town a postcard-perfect holiday look that feels as timeless as its craft traditions.
French Lick
French Lick began as a 19th-century mineral springs spa resort and became famous for its grand hotels, rail visitors, and spa culture. Those hotels still define the town's skyline, offering an air of Gilded Age luxury that carries into the holidays. Marble lobbies, chandeliers, and historic details set the stage for a classy winter getaway where history and celebration meet.
The 1840 French Lick Springs Hotel transforms for the season with lavish trees, wreath-lined corridors, and carriage rides. Guests can enjoy live music, seasonal dining, or a walk through downtown's decorated storefronts. Visitors often pair a spa treatment with a holiday cocktail or stop by the nearby West Baden Springs Hotel to admire its 200-foot domed atrium lit with thousands of lights and its beautiful gardens. You can also browse the boutiques downtown, such as Big Creek Boutique for Western attire and CJ's Boutique, or ride the Polar Express Train at the French Lick Scenic Railway. This is one of Indiana's most elegant holiday experiences.
Madison
Set along the Ohio River, Madison is known for having one of the largest National Historic Landmark districts in the United States. Its historic 19th-century brick buildings, red cobblestone streets, and the riverfront create a stunning backdrop at any time of the year, but especially during the holidays when they are all lit up. It almost makes it easy to imagine Christmases from a century ago, complete with candlelit windows and carriage rides.
Holiday celebrations here include the Nights Before Christmas Candlelight Tour of Homes, which invites guests inside beautifully decorated houses and landmarks, including the 1815 Schofield House and the Charles L. Shrewsbury House. Downtown stores stay open for shopping events, and the Lanier Mansion State Historic Site offers guided holiday tours. While you are here for the holidays, stroll along the river, savor a festive meal at the Downtowner or the River Oak Chophouse, or go for warm nostalgia at Hinkle's Sandwich Shop, a longtime downtown favorite.
You can also attend live performances in the small theaters or watch the annual parade illuminate the historic district. Other holiday events you can participate in include the riverfront park's tree lightings and market stalls, while antique stores, such as the Village Peddler, offer unique, locally made gifts. Madison's balance of history and hospitality makes it a perfect stop for travelers who like their holidays with a touch of history.
Zionsville
Founded in the 1850s as a railroad village, Zionsville's brick-paved Main Street gives it the feel of a New England village in the heart of Indiana. Its downtown area is walkable and lined with independent stores, including Black Dog Books and Frances + Parke, as well as galleries like Art in Hand Gallery, a cooperative gallery run by local artists. Each December, Zionsville is decorated with colorful lights, garland, and costumed carolers filling the sidewalks, horse-drawn carriages passing through the square, and a Christmas tree lighting ceremony.
Local bakeries, such as The Baker's House and My Sugar Pie, serve seasonal pastries, while Fivethirty Home offers handcrafted gifts and decor. Restaurants along Main Street switch to winter seasonal menus, while the streets stay lit well into the night. Enjoy the evening at the Cobblestone, featuring live jazz and folk music on weekends, or the Convivo Italian Artisan Cuisine, which offers wood-fired pizzas.
Shipshewana
Shipshewana is at the heart of Indiana's Amish Country, where horse-drawn buggies, craftsmanship, and a simple way of life are everyday occurrences. Quilt shops, woodworkers, and local markets are abundant in the downtown area, welcoming visitors who stop by to look for unique gifts at the Shipshewana Craft Barn or Scherger's Kettle, where traditional Amish-style preserves are available. The authenticity shines brightest during the holidays.
The Shipshewana Lights of Joy drive-through display spans over a mile, featuring glowing scenes and Christmas music. In towns, visitors can wander the Shipshewana Auction & Flea Market's indoor spaces for gifts. The town's Ship-Chic craft fair fills the weekends with handmade goods, and the Blue Gate Theatre hosts seasonal shows. The holiday markets are the perfect place to find quilts, wooden toys, and baked goods. Visitors can also take a horse-drawn buggy ride through the snow. The Blue Gate Restaurant & Bakery and Shawna Rae's Bakery & Café serve hearty Amish meals and pies that taste like how Grandma used to bake.
New Harmony
New Harmony began in the early 1800s as a utopian community, an experiment in communal living and education. That spirit still defines its quiet streets and preserved buildings. The town's compact downtown, filled with galleries, historic homes, such as the Amon Clarence Thomas House, the Harmonist Labyrinth, and cultural landmarks like the Working Men's Institute (a library, museum, and art gallery), makes it one of Indiana's most unique places to celebrate the season. A great place to start is the Atheneum Visitor Center. Inside, you'll find a museum, multiple galleries, and a gift shop.
The Christmas in New Harmony Festival brings carriage rides, local markets, and live music. Fun holiday activities include attending small concerts, guided tours of historic buildings like the Ludwig Epple House, exploring the New Harmony State Historic Site, and attending candlelight services. Holiday markets fill the streets with homemade crafts, art prints, and baked goods, while inns and cafés provide cozy spots to warm up, or you can hang out at Sara's Wine & Bier Bar with outdoor seating and a fire-pit area. Another local favorite to add to your list is the Yellow Tavern, which serves German-style cuisine.
Corydon
Corydon was Indiana's first state capital, and its downtown still centers on the Old Capitol building and the Governor Hendricks Headquarters, which you can tour, as well as the historic courthouse square. Brick sidewalks, early 19th-century limestone buildings, and public monuments give it a sense of permanence that anchors the holiday season. The compact town square serves as a gathering place for parades, choirs, and community traditions. The season begins with the Light Up Corydon event, when families gather for the lighting of the square, the live nativity, and the arrival of Santa. This holiday event offers live entertainment, carriage rides, the Grinch, food trucks, and holiday vendors. There is also a Christmas parade to enjoy.
During the holidays, numerous events take place each weekend leading up to Christmas. The town hosts a self-guided Historic Home Tour through eight historic residences. The Merry Country Christmas is a hay wagon tour through Hayswood Nature Reserve filled with tens of thousands of Christmas lights and displays. The Corydon Christmas Extravaganza is an annual event, featuring over 100 vendors showcasing antiques, vintage decor, handmade items, and artwork, along with food trucks and entertainment. The town even has a Cookie Walk, where you can sample sugar cookies, gumdrops, and so many others. After all this excitement, there is still plenty to do in Corydon, such as visiting Zimmerman Art Glass, shopping at Chestnut Street Market, or heading to the popular 1816 Modern Kitchen & Drinks for a modern take on Southern classic meals.
Indiana's small towns turn simple holiday traditions into lasting Christmas memories. From the storybook streets of Zionsville to the historic decorated homes of Corydon, each town offers its own unique version of Christmas hospitality. Whether you're sending a postcard from Santa Claus, browsing the shops in Nashville, or walking the candlelit streets of Madison, these downtowns capture the essence of a classic Midwestern holiday. Visit and see for yourself!
