In some areas the local folk gathered together and held a joint feast at Yule, which was called Jólagleði, Yule Joy.

These feasts continued until the Reformation, Catholicism being more tolerant of enjoyment at Yule than the reformers. The last Catholic Bishop at Hólar, Jón Arason, held large Yule feasts. But after that time there exist many letters from religious and lay leaders complaining about the dancing and merriment at Yule. And this had the effect that these feasts and dancing were not allowed for a couple of centuries. And Iceland lost most of it's native Folk dances as a result.

There are many folk tales about dancing on Yule Eve and as people usually went to church on Yule Eve, somebody was left to guard the house against elves, who came to empty houses and danced the night away. This may be an indication that the people of Iceland sought out empty farmhouses on Yule Eve and danced there.

A Royal Decree on Holidays states: "All chess, games, running, card games, loose talk and entertainment are hereby strongly forbidden ..." Even though this has long since been rescinded, this attitude still has some effects, as among many elderly people it is considered a bad omen to play cards on Yule. Strange attitude, when one considers that the Yule presents they usually received as children were a candle and a deck of cards.

All this started to change just before 1900 and Yule merriment was rekindled, especially for children. The Jólaskemmtanir, Yule Entertainment, started then and are still going strong. They were started by the Trade Unions top provide children from poor families with a chance to see a Yule Tree, dance around the tree, and have a little fun.

Dancing around the Yule Tree

But public entertainment is still considered inappropriate on Yule Eve and Yule Day, and it is only on Boxing Day that dancing is allowed in public.