A walking tour of Nuremberg’s picturesque Old Town is the ideal way to kick off the holidays, and fairy-tale views await around every corner. Wander the sloping cobblestone lanes, admire the timber-framed townhouses with their candy-colored facades, then explore the medieval city walls and castle. Nearby, the Albrecht Dürer's House, one-time home of the celebrated German artist, reopens each year during the Christmas market season.

Afterward, get in the holiday mood with a visit to the Nuremberg Toy Museum, pop into the Käthe Wohlfahrt store to purchase some luxury tree ornaments from Germany’s most famous Christmas store, then swing by Lebkuchen Schmidt, home of the city’s trademark gingerbread since the early 17th century.

All roads in the Old Town lead to the Hauptmarkt, Nuremberg’s central square, and the huge Christkindlesmarkt. Time your arrival for noon, when crowds gather to watch the mechanical clock of the Church of our Lady (Frauenkirche) perform its daily song-and-dance routine, then spend the rest of the afternoon shopping for gifts at the market’s traditional wooden booths with red-and-white roofs.

Look out for an array of hand-crafted gifts, regional specialties, and festive decorations from some of Germany’s most talented artisans, including zwetschgenmännle (little figurines made from prunes and wire, which come wearing ever-inventive costumes). The market spills out onto the nearby Rathausplatz and other squares, so leave yourself plenty of time to explore.

The Old Town is most enchanting at night, so stick around to soak up the yuletide ambiance. Warm up with a mug of hot glühwein as you stroll the city streets and hold on to your mug as a souvenir—the designs change each year. Admire the glittering Schöner Brunnen fountain on the main square, then stroll down to the Pegnitz River, where the waterfront dazzles with festive illuminations.

Insider tip: Keep a lookout for the Christkind, the blond-haired “angel of Christmas” that takes the place of Santa Claus in Nuremberg folklore. Each year a real-life “Christkind” hosts the Christmas Market Opening Ceremony.

Take a break from all the holiday festivities to complete your Nuremberg sightseeing tour. Just south of the Old Town, the Nazi party rally grounds provide a fascinating insight into the city’s WWII history. Opt for a guided tour to learn more about Nuremberg’s notorious Nazi rallies, see the half-finished Congress Hall and other Third Reich buildings, and visit the Documentation Center.

Then, continue to the Nuremberg Palace of Justice, where the infamous Nuremberg Trials took place, before hopping on the train back to the Old Town.

Get back in the holiday spirit with a visit to Nuremberg’s two alternative Christmas markets. Family fun awaits at the Children’s Market on Hans-Sachs-Platz, where kids can take part in a host of hands-on activities, from crafting to making festive treats. Even sans kids, it’s worth a visit to admire the traditional carousel, Ferris wheel, and miniature steam railway.

Next to the main market, the Sister Cities Market has themed stalls from more than a dozen of Nuremberg’s “sister cities,” bringing an international flavor to the festivities. This is the place to purchase some Scottish shortbread, carved wooden angels from the Czech Republic, sweet Provencal lavender honey, or Ukrainian matryoshka dolls.

Feasting on festive foods is a highlight of any Christmas getaway, and nowhere does hearty winter cuisine like Bavaria. Sample all the city’s festive eats, starting with a classic Rostbratwurst (traditional finger-sized pork sausages, also known as Nurembergers) topped with mustard or sauerkraut. Flammkuchen (flatbread pizza), Gebrannte Mandeln (roasted almonds), and the city’s ubiquitous Lebkuchen (gingerbread) are also unmissable.

And don’t forget to wash it down with a festive tipple. Choose from Gerstacker glühwein, unique to Nuremberg and made with blueberry wine, and the city’s famous Feruzangenbowle, a hot rum punch topped with a flaming sugarloaf served from a gigantic pot.

Nuremberg isn’t the only Bavarian city that goes all out for the holidays. The remarkably preserved medieval town of Rothenburg ob der Tauber inspired both the Grimm Brothers’ fairy tales and Walt Disney’s Pinocchio—and it’s even more charming during the holiday season. The best views are from the old city walls, so climb up to walk the ramparts and gaze out over the gabled houses and maze of cobbled lanes adorned with their festive decorations.

Stick to Rothenburg for the open-air Christmas market with brass band concerts and carol singers performing around the Market Square. Handicrafts and tree ornaments are among the top buys, but the hands-down favorite is local specialty schneeballen (snowball-shaped pastry balls rolled in sugar). Choose from flavors such as cinnamon, chocolate, or pistachio, or opt for a selection box and sample them all—it is Christmas, after all.

Other festive pit-stops include the Käthe Wohlfahrt Christmas store, where you’ll find the German Christmas Museum. Head inside for a festive tour through the ages, filled with antique ornaments, hand-made nativities, vintage toys, and Father Christmas figurines.

Back in Nuremberg, there’s just time for some last-minute gift shopping or festive snacking before you wrap up your holiday vacation. But for a truly memorable end to your trip, hop aboard a horse-drawn stagecoach for a final tour of the Old Town. These festively decorated yellow carriages are a mainstay of Nuremberg’s Christmas season. Cozy up inside with a warm blanket (and maybe a final mug of glühwein to sip along the way) and admire the twinkling Christmas lights as you clip-clop along the cobbles—a magical way to end your festive trip.