The nisse is a centuries-old figure in Danish folklore, and every December these tiny, mischievous spirits take center stage. While Santa Claus makes one big appearance late in the month, the nisse are active the whole season long.

With their short stature and bright red hats, nisse are often mistaken for Santa's elves, but they live very different lives. Rather than helping in a workshop, nisse belong to individual households. They slip in and out of the walls at night, hide everyday objects, turn milk strange colors, and generally make harmless trouble. On December 24 they expect a bowl of rice pudding, and if they don't get it, they're known to act out.

In modern Denmark, nisse aren't just folklore—they're also big business. At the housewares shop where I work during the Christmas rush, we stock more than 450 nisse-related products. There are soft dolls, tree ornaments, and hand-painted figurines with names like Asbjørn, Thorkild, Elvin, Liam, and Olivia.

And then there are the accessories: tiny doors for the nisse to "enter" the home, miniature doormats, wooden shoes, rocking chairs, honey cakes, buckets, sleds, toolboxes, and of course the classic bowl of rice pudding. Many families—especially those with small children, and a surprising number of older women living alone—create small nisse worlds inside their homes.

Some families also hang kravlenisser, the little paper nisse that "crawl" up walls and windows. They're not as popular as they once were, mostly because they're inexpensive and don't fuel the booming nisse economy.

Nisse season extends into the workplace, too. Danes might be assigned a nisseven, or "nisse friend," for secret gift-giving at the office. And at holiday parties, even managers may don the pointed red nisse hat—a cheerful symbol of community and self-irony that sometimes surprises international colleagues.

From home traditions to office fun, the nisse remain an essential part of Christmas in Denmark: tiny spirits with big personalities, and an even bigger cultural footprint.

This is the final episode in our 12-part series, The Danish Year. Read more at howtoliveindenmark.com, or buy our books at books.howtoliveindenmark.com.

You can book Kay Xander Mellish, the voice behind the How to Live in Denmark podcast, for a speech or workshop on Danish culture or Danish working culture at events.howtoliveindenmark.com. Learn more about Kay at kxmgroup.dk.