THERE tend to be two dominant schools of thought when it comes to considering how best to celebrate the festive period. On the one hand, there are those who are inclined towards the spiritual, family-minded traditions of the season and don't much care for the overt commercial trappings that are now as ubiquitous as Santa hats at a December hen party.

There are others, however, for whom the long December nights are primarily a time to let their hair down at the end of another year. Thankfully, after decades of struggling to achieve a unique Christmas identity, Edinburgh has now managed to strike the balance between tradition and modernity to create a seasonal environment that has something for everyone.

Like the city's Hogmanay celebrations, Edinburgh's Christmas (www.edinburghschristmas.com) has - largely thanks to the innovation of the City Council and partners Unique Events - been transformed from a past of half-hearted light displays and Santa-ridden cliches into a full-blown extravaganza that showcases the city in its most alluring light. For the traditionalists, there are carol services, pantos and a wealth of family-orientated activities that would make Frank Capra proud. At the other end of the scale, the city's pubs, clubs, venues and restaurants provide a buzzing setting to drink and be merry.

Much of the action is centred right in the heart of the city in Princes Street Gardens. As of Thursday, when the Christmas lights are switched on in the city centre, the Gardens take on the unique aura of a winter-wonderland where, in the space of a couple of hours, it is possible to lose yourself in a whirl of activity. For those with a head for heights, a ride on the Ferris wheel is an exhilarating way to observe the Capital in all its glory while the purpose-built ice-skating rink is a great place to cruise gracefully (or flail clumsily) with friends or lovers. Elsewhere in or immediately adjacent to the gardens, there is a purpose-built bungee-jumping dome and a kids' funfair.

One of the most effective additions to Edinburgh's Christmas landscape has been the traditional German market. Anyone who has ever been to other parts of northern Europe during the festive season will be aware that this charming collection of homely stalls is a far more heartening prospect than the hectic and crowded environs of a British high street store. And, even if your interest in the nicknacks being sold extends merely to a cursory browse, a glass of Glühwein and a gourmet roast pork sandwich is not exactly the worst way to round off a hard day's shopping. While many adults view the festive period with a mixture of enthusiasm and irritation, the magical qualities of the season are still fully concentrated in the minds of most children. And there is plenty to keep the little ones occupied until the man with the bushy white beard and the snappy red outfit comes calling on December 25.

Despite his hectic schedule, Santa makes an early appearance in the city on December 10 at the opening of his Reindeer Garden in West Princes Street Gardens when he will be dropping off Blitzen, Rudolf and co for a two-week rest before they get down to the serious business of present-delivering on Christmas Eve. For those who just can't get enough of St Nick, there's a Santa overload in the gardens the following day when thousands of jolly doppelgangers are expected for the Great Scottish Santa run. Kids are welcome to enter the run, which circumnavigates the gardens, and children over 12 receive a free Santa suit which they get to keep, while under-12s get to participate in the event as elves.

Whatever your thoughts on the changing nature of the period, there are some Christmas traditions that will likely stand in a time warp of their own for all eternity. One of these is panto and this year's offerings are, as always, a none too serious collection of romps designed to put smiles on the faces of all the family.

The King's Theatre (0131-529 6000) on Leven Street in Tollcross is arguably the city's premier venue for panto and this year's production of Cinderella, starring panto masters Andy Gray and Allan Stewart, will doubtless live up to the theatre's exacting seasonal standards. Another classic, this time Pinocchio, gets the treatment at the Royal Lyceum Theatre www.lyceum.org.uk while The Snowman is the featured production at the Festival Theatre.

Perhaps the most intriguing of this year's panto selection is the Brunton Theatre in Musselburgh's Scottish take on Dick Whittington. The Brunton production - which is actually entitled Dick McWhittington as a nod to its regional realignment - promises a contemporary take on traditional panto with pop-music stylings nestling alongside typical tricks of the trade.

For those who choose to find their entertainment out with the blatantly Christmas-orientated sphere, December is a great time to go out in Edinburgh. With another year almost done and the promise of a holiday ahead, the short days tend to morph into long nights of partying and pubs and clubs are never short of revelers.

Lovers of live music and clubbing will find plenty to occupy themselves in places like the Bongo Club on Holyrood Road, the Liquid Room on Victoria Street, Cabaret Voltaire on Blair Street, and a host of smaller music hotspots around and about town. Many of Edinburgh's club nights run Christmas specials and the best bet is to keep your eyes peeled for flyers and posters and listings in magazines or on websites. Among the big names in the music world set to visit Edinburgh during the festive period are Status Quo (December 19, Usher Hall), perennial seasonal favorites the Bootleg Beatles (December 10, Usher Hall) and critically acclaimed jazz chanteuse Madeleine Peyroux (December 9, Usher Hall).

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