Replacing fuses in Christmas lights is a simple process, but it does require a bit of caution. First, make sure you unplug the lights from the outlet and allow them to cool down for a few minutes. Once the lights are cool, carefully remove the bulb covers and locate the fuse. The fuse should be located at the base of the light strand, usually near the plug. It will look like a small metal cylinder or glass cylinder with metal at the top. To remove the fuse, simply pull it straight out.