Yes, Muslims do celebrate Christmas. Christmas is a religious holiday celebrated by Christians to commemorate the birth of Jesus Christ. While Muslims do not believe in Jesus Christ as the son of God, they do recognize his historical significance and his importance as a religious figure. Many Muslims around the world celebrate Christmas by exchanging gifts, decorating their homes, and attending Christmas Eve services. However, the celebration of Christmas is not a religious obligation for Muslims, and the holiday is not considered a significant part of their religious tradition.