Michigan's 8 Most Festive Downtowns For The Holidays

The state of Michigan offers an abundance of festivities during the holidays. As the cold winter weather sets in, the state transforms into a winter wonderland filled with bright lights and dozens of celebrations. From holiday decorations and tree lightings to festive parades, every town adds its own unique touch to the season. From the top of the state on Mackinac Island to harbor towns like Traverse City and the Bavarian-style charm of Frankenmuth, these are eight of Michigan’s most festive downtowns for the holidays.

Traverse City

Located along the shores of Grand Traverse Bay, Traverse City is the perfect walkable winter town that is a must-see during the holiday season. The downtown comes alive with festive decorations and seasonal events like the annual tree lighting and its very own light parade. The Traverse City Light Parade features a visit from Santa Claus, the town’s mayor, and a stunning display of decorated floats, vehicles, and musical performances. After the parade, visitors can stroll through Christmas Alley, where sparkling lights and displays create the perfect holiday photo backdrop. Be sure to check out the historic State Theatre, which hosts all the best Christmas-themed movie screenings throughout the month of December.

Mackinac Island

Head north to discover the breathtaking beauty of Mackinac Island, which was once named by HGTV as one of the Top 10 Christmas Towns in America. The island’s annual Christmas Bazaar celebration at the town's Community Hall features silent and live auctions, handmade goods, raffles, and desserts. Make sure to check out Elf: The Musical, presented by the Mackinac Island Community Theatre at Mission Point Theater. To ring in the New Year, the island hosts its own tradition on the famous Times Square celebration, called the Great Turtle Drop, where a giant turtle is lowered to mark midnight.

Frankenmuth

Known to many as Michigan’s Little Bavaria, this German-architecture-inspired town is a must-visit for every season, but especially for the holidays. The town features the world's largest Christmas store, Bronner's Christmas Wonderland, which features almost 50,000 different trims and gifts on the showroom floor. Before leaving Bronner’s, be sure to visit the Silent Night Memorial Chapel, a replica of the chapel in Oberndorf, Austria, where the Christmas carol of the same name was first performed. Bavarian Inn Restaurant and Zehnder’s of Frankenmuth are both highly recognized local restaurants, perfect for a cozy dinner when it's snowy outside.

Petoskey

Nestled along the shores of Little Traverse Bay, Petoskey is a picture-perfect destination to ring in the holiday cheer. The season kicks off with the beloved Downtown Petoskey Holiday Open House, where the streets glow with twinkling lights, carolers, and Santa makes a special appearance for the annual tree lighting ceremony. Visitors and locals alike flock to the Downtown Petoskey Holiday Parade, a festive procession featuring creative floats, community groups, and a performance from the award-winning Petoskey High School Marching Band. For families, Brunch with Santa at the Perry Hotel is a can’t-miss tradition, complete with a brunch buffet, photo opportunities, and a heartwarming storytime with Santa himself.

Manistee

Experience one of Michigan’s most unique holiday traditions in Manistee at the Annual Victorian Sleighbell Parade. A weekend celebration that transports visitors back in time with streets lined by bagpipers, reindeer, and carolers dressed in Victorian attire. The parade’s highlight features draft horses pulling a 30-foot Christmas tree through its downtown, followed by its tree lighting with glowing luminaries and festive music. Just a short drive north, check out the annual holiday spirit at Bear Lake’s “Sparkle in the Park.” This drive-through light display transforms Hopkins Park into a winter wonderland, where twinkling lights and decorations create the perfect ending to your northern Michigan holiday trip.

Houghton

For a more relaxed and traditional celebration, head north to Houghton, located on Michigan’s scenic Keweenaw Peninsula. The city’s Winter Wonderland event along the waterfront pier offers plenty of holiday activities for all ages. Sip hot cocoa as you stroll past festive displays, meet Santa, and take in the cozy sense of community that defines this Upper Peninsula town. Downtown Houghton shines under tons of lights, where all the local shops and boutiques welcome visitors with their small-town warmth. Stop by Camp Coffee Company for a seasonal latte or browse through Black Ice Comics & Books for the perfect local gift. Surrounded by snow-covered pines and lakefront beauty, Houghton’s old-fashioned holiday spirit is nothing short of magical.

Marshall

Located in southern Michigan, the town of Marshall knows how to celebrate the holidays with its very own heartwarming, small-town flair. This close-knit community of just under 7,000 comes alive each season with festive traditions, beginning with the Annual Candlelight Walk, now celebrating its upcoming 44th season. Guests can enjoy guided tours of five beautifully decorated historic homes, each with timeless holiday decor and bright lights. For a touch of sparkle, head to the Merry Mile at the Calhoun County Fairgrounds, where you can drive through one mile of glowing light displays. Be sure to grab your favorite beverage for the Holiday Sip and Shop, filled with dozens of festivities and games at the town's local shops.

Holland

Celebrate the holidays with a touch of classical charm in Holland, where Dutch traditions blend perfectly with Michigan’s festive spirit. The 8th Street Marketplace transforms into Kerstmarkt for the holidays, a European-style Christmas market inspired by the Netherlands. Visitors can browse 19 different booths offering handmade gifts, crafts, and seasonal treats, making it the perfect spot to find a holiday souvenir. Be sure to stop by the Downtown Holland Holiday Open House, where local shops stay open late, carolers fill the streets with music, and twinkling lights line the brick-lined sidewalks. Lastly, check out the lights at the Windmill Island Gardens, which light up the dark winter nights during Magic at the Mill.

Michigan's Most Festive Towns

From exciting downtown parades to dazzling light displays, Michigan’s holiday season captures the spirit of the season like nowhere else. Whether you’re wandering festive streets, embracing the seasonal beauty, each destination tells its own holiday story. From the lakeside magic of Petoskey and the historic elegance of Marshall, these towns truly sparkle with holiday cheer. Wherever your travels take you, these eight Michigan towns promise a season filled with warmth, tradition, and unforgettable memories.