The Christmas story takes place in Bethlehem, a small town located in Judea. Jesus was born in a stable in Bethlehem, which was a small city at the time. The town was home to the Jewish people and was under the rule of the Roman Empire. Today, Bethlehem is a city in the West Bank, a region in the Middle East. It is one of the oldest cities in the world, with a rich history and a vibrant culture.