One simple craft is making a paper plate Santa. Cut out a circle from a paper plate for Santa's face. Let the toddler glue on cotton balls for his beard and draw on the eyes and nose. Another idea is to make a Christmas star out of popsicle sticks. The toddler can paint the sticks and then you can help them glue the sticks together to form a star. This can be related to the star in the Christmas story.
Once upon a time, on Christmas Eve, a little toddler named Timmy was very excited. He helped his mommy bake cookies for Santa. He used his tiny hands to roll the dough and cut out the shapes. That night, he left the cookies and a glass of milk by the fireplace. When he woke up in the morning, there were presents under the tree and the cookies were half - eaten. Timmy was overjoyed.
Take an old cardboard box and turn it into a manger. Cut out the shape, let the toddler paint it brown, and then add some straw made from yellow construction paper. You can also use bottle caps to make the Three Wise Men. Paint the caps different colors, and attach them to a piece of cardboard with the toddler. This way, they can learn about the story while using recycled materials.
For toddlers, you could do a Christmas bible craft like making a manger. Use a small box as the manger and some straw or shredded paper inside. As for the story part, tell them about how there was no room at the inn and baby Jesus was laid in a manger. You can also have the toddlers color pictures of the shepherds and angels while you tell the story of how the shepherds were visited by angels and told about the birth of Jesus. This way, they can engage with the story while doing a fun craft.
There are several great ones like 'Rudolph the Red-Nosed Reindeer' and 'Frosty the Snowman'. They have simple stories and cute characters that toddlers love.
A wonderful option is 'How the Grinch Stole Christmas'. The character of the Grinch is so iconic. Toddlers can learn about the true meaning of Christmas as they see how the Grinch's heart grows when he realizes the joy of the holiday, despite his initial attempts to steal it. The bright colors in most versions of the book also attract toddlers.