Yes, Japan does celebrate Christmas, but it is a relatively recent tradition. Many Japanese people are not Christian, so Christmas is more of a cultural event than a religious holiday. It is a time for family gatherings, gift-giving, and enjoying festive decorations. Santa is also a popular figure in Japan, and many people enjoy decorating their homes with Christmas trees and other decorations. Some people also attend church services or participate in other religious celebrations, but overall, Christmas in Japan is more focused on spending time with loved ones and enjoying the holiday spirit.