Holiday Music Discs can be found in chests throughout the Overworld, or can be dropped when a Skeleton kills a Creeper.
Red Holiday Music Disc
Lofi Holiday Musicmerrymaking:christmas_music_disc_1The Red Disc plays an assortment of Lofi Holiday Songs by LofiGeek.
Green Holiday Music Disc
Holiday Musicmerrymaking:christmas_music_disc_2The Green Disc plays more traditional Holiday music.