The following year, she released her first live album A Night at the Symphony with the Iceland Symphony Orchestra, a top five success in Iceland and on the US Classical Albums chart.

Laufey achieved a breakthrough in her career in 2023 with her second album Bewitched, which reached the top twenty in seven countries, topped several jazz album charts around the world and featured the moderately successful single "From the Start".

Between 2023–25, her cover of "Winter Wonderland" became the highest-charting version of the song in the Core Anglosphere countries, excluding the United States, and her first entry on the Billboard Global 200.

It is included on the reissue of her Christmas EP A Very Laufey Holiday: The Santa Baby Edition, which featured the title track, her second and third top forty entries on the Irish Singles and UK Singles charts, respectively.

Only on Amazon Music, the EP also featured the original theme from the film Red One, Laufey's first entry on the Billboard Hot 100.