Yes, Japanese people do celebrate Christmas. Christmas is not as widely celebrated in Japan as it is in some other countries, but many Japanese people do participate in Christmas traditions such as exchanging gifts, decorating Christmas trees, and attending Christmas parties. Additionally, Japan has its own unique Christmas traditions, such as eating KFC chicken for Christmas dinner and visiting illuminations, which are light displays that illuminate parks and streets. While Christmas is not a national holiday in Japan, it is still an important cultural event that many Japanese people enjoy celebrating.