With a name like Bethlehem, the idea to sponsor a Christmas festival in this charming New England town was obvious.  The first big fund-raising Christmas festival was held in 1981 with a goal of rebuilding Bethlehem's original Memorial Hall, built in 1912, which was destroyed by a recent fire. A permanent Christmas Town Festival Committee was established to oversee the collection and distribution of these funds. In 1982 the sale of a limited edition pewter Christmas ornament was suggested as an additional way to raise money for the Hall.  Since those early years, the festival has continued to be held on the first Friday and Saturday in December with profits going to the upkeep of Memorial Hall. Quite a few town organizations have come to participate in the Christmas Festival as their major fund-raiser for the year, and many thousands of visitors from the tri-state area return year after year to enjoy the Bethlehem Christmas Town Festival as a cherished family tradition.

The Christmas Town Festival Committee works behind the scenes for most of the year to ensure the festival continues to be a welcoming and vibrant holiday destination for all. From decorating the buildings and gazebo around the green with lights and wreaths, managing festival parking, traffic and shuttle service, to erecting the near-lifesize Creche and decorating the 80+ foot evergreen tree on The Green that serve as the visual center of the festival. The Festival Committee engages holiday performers, entertainments, attractions and an inviting variety of food and craft sellers to delight visitors of all ages. This all volunteer town committee is a not for profit organization under the auspices of the Town of Bethlehem.