Prescott was officially designated as "Arizona's Christmas City" by Governor Rose Mofford in 1989. The city and its surrounding communities offer a variety of holiday light decorations, displays, parades, and other activities with old-fashioned hometown charm. The Courthouse lighting is a tradition established in 1954 for residents and visitors to share family time in the spirit of joy and wonder that is the holiday season. Prescott has a four-season climate as well as many historic Victorian style homes, which serve to enhance its Christmassy atmosphere.

Festivities typically begin on the Saturday after Thanksgiving with the Holiday Light Parade. On the following Saturday there is the annual Christmas Parade that winds around the Courthouse Plaza, followed by the Courthouse Lighting ceremony, when the Plaza explodes in the incandescent beauty of nearly one million Christmas lights. You should come to the historic Courthouse Plaza early to stake out your spot, as this event always draws a huge crowd.

In addition, the lobby of the Prescott Resort and Conference Center boasts the World's Largest Gingerbread Village. More than 100 houses constructed of gingerbread and decorated with icing, candies, nuts, cookies, and dried fruit are set in a winter wonderland that includes an electric train display. Community groups and individuals enter their houses for judging in several categories. The village can be viewed 24 hours a day, seven days a week, through the end of December. There is no charge to see the Gingerbread Village, but it is a fundraiser for Yavapai Big Brothers Big Sisters.