Written and recorded during the COVID-19 pandemic, the song expresses the idea that even in a turbulent year, optimism can still be found in Christmas.

[1] "Christmas Saves the Year" was written, composed and recorded in lead singer Tyler Joseph's home studio.

[2] Twenty One Pilots debuted the track at the end of a Twitch stream in which Joseph played in the Chipotle Challenger Fortnite series tournament to raise money for the Make-A-Wish Foundation,[3][1][4] after having teased "a gift" for the viewers of the stream.

Joseph wrote the song from the perspective of his "friends who live in some bigger cities that have these small apartments", and are "trying to weigh the options of whether or not they should see their family this year.

[9] Joseph's wife Jenna posted an unofficial music video to her Instagram account on January 15, 2021, showcasing Rosie in the family home.