Yes, Chile does celebrate Christmas. It is a popular holiday in Chile, with many people observing the traditional customs and festivities associated with the holiday. Some of the most common Christmas traditions in Chile include decorating the home with lights, wreaths, and other decorations, setting up a nativity scene, exchanging gifts, attending church services, and eating traditional Christmas foods like turkey or roast beef with mashed potatoes and vegetables. Children in Chile also look forward to receiving gifts from Santa Claus or "San Nicolas" on Christmas Eve.