The modern English word Yule derives from the Old Norse Jôl, which refers to pagan feasts during the Germanic winter solstice. These would sometimes last twelve days and were later Christianized into Christmas. They involved the giving of gifts, festive meals, decorated trees and colored lights to ward off evil spirits. Live evergreen trees were often brought into homes during the harsh winters as a reminder to inhabitants that soon their crops would grow again. Holly was placed over doorways in the belief that it would ward off evil spirits; its berries were also thought to be a food of the gods.

Legends refer to the battle between the Oak King and the Holly King at Yule, in which the Holly King won. Huge Yule logs were thrown onto bonfires to honor Thor, the god of thunder. Logs were cut into pieces and offered to each celebrant; they symbolically offered wealth and protection throughout the coming year. There are numerous parallels between the Germanic god Odin and Santa Claus. Odin was said to have led great hunting parties through the sky during Yule. Old Norse poems describe Odin riding an eight-legged horse named Sleipnir that could leap great distances. There are stories of children leaving boots filled with food near their chimneys for Sleipnir to eat; Odin would then reward them with gifts and candy. There are obvious similarities with Santa's sleigh ride, his reindeer and the giving of presents.