The Nativity lantern is a Christmas decoration that is traditionally hung outside of the house. It is a lantern with a candle inside that lights up the decorations on the front of the lantern. .The Nativity lantern is hung in the window or outside of a house. The decoration centers on the Nativity scene. The decorations on the front of the lantern are typically designed to reflect Christmas, such as bells and shepherds with their sheep. There are also often pictures of Santa Claus, angels, and other religious figures that represent various parts within a Nativity scene.