PurposeThe annual holiday party is a long-standing tradition in many organizations, yet academic research has largely left the holiday party unexamined. The present study sheds light on this significant social event by exploring what factors help differentiate successful events from less successful ones.Design/methodology/approachFirst, the authors developed a taxonomy of characteristics of good holiday parties using a critical incident technique in which stories of holiday party experiences were analyzed following a mixed-method approach. Second, the authors quantitatively examined the relationships between these characteristics and three outcomes, including perceived organizational support, positive interpersonal interactions, and experienced fun.FindingsThe critical incident analysis revealed 11 key characteristics that distinguish good from bad holiday parties. Primary findings from the quantitative study are that games and activities, music, good food, and notable positive leader behavior are key characteristics of more successful events.Research limitations/implicationsAs the data were obtained using a traditional survey methodology, further research would be valuable that adopts an experience sampling methodology to capture employee experiences, perceptions, and feelings about holiday parties in real-time before, during, and after an event has occurred.Practical implicationsFrom an event planning standpoint, this research provides a framework for designing holiday parties and provides evidence as to which features matter most. From a strategic leadership perspective, this research signals that different features of holiday parties can influence different outcomes.Originality/valueBeyond merely identifying important characteristics, this research provides a framework for further research on holiday parties and identifies theories that can be used in future research to explore the mechanisms that influence how and under what conditions holiday parties impact employees’ experiences at work.