This recipe for Christmas Sugar Cookie Bars has become my go-to holiday bake when I want something festive, shareable, and reliably loved by friends and family. I first adapted these bars from my grandmother's drop cookie method during the first holiday season after my son was born — I needed something that would travel well to potlucks and still feel homemade. The texture is what sold me: the bars have a delicate, almost shortbread-like crumb with the soft chew of a classic sugar cookie, while the frosting pulls everything together with a silky vanilla creaminess that isn't overly sweet.

I discovered the exact proportions after a winter of trial and error, swapping butter for part cream cheese to get extra tenderness without losing buttery flavor. What makes these bars special is how they combine the nostalgic flavor of a sugar cookie with the convenience of a sheet-baked bar: you can cut perfect squares, plate them on a platter, and sprinkle them with holiday colors. They keep well for several days and freeze beautifully, making them ideal for cookie exchanges, classroom parties, or last-minute neighbor gifts.

Ingredients

• Unsalted butter: Use real unsalted butter, softened to room temperature (not melted). Brands like Land O'Lakes or Kerrygold give a clean buttery flavor that browns nicely in the oven. Butter provides structure and richness.
• Cream cheese: Full-fat cream cheese (8 oz block total used across dough and frosting) adds tenderness and a slight tang. Soften it fully to avoid lumps and to make the dough easy to spread.
• White sugar: Granulated sugar for light sweetness and a fine crumb — do not substitute with brown sugar for this particular texture unless you want a chewier, caramel flavor.
• Vanilla and almond extracts: Pure vanilla extract is best for depth; almond extract is optional but adds a festive, slightly marzipan note when used sparingly (1/2 teaspoon).
• Eggs: Large eggs bind and tenderize. Room-temperature eggs incorporate more evenly into the batter.
• All-purpose flour, cornstarch, baking powder, salt: The flour provides structure; cornstarch softens the crumb so bars stay tender rather than dense. Baking powder gives a gentle lift.
• Powdered sugar and holiday sprinkles: Powdered sugar sweetens the frosting and helps it set; choose high-quality sprinkles that won’t bleed color when applied immediately after frosting.

Instructions

Prepare the pan and oven: Preheat the oven to 350°F. Line a 9x13-inch baking pan with parchment paper leaving an overhang for easy removal, or grease and flour the pan lightly. An even-lined pan ensures straight edges when slicing and prevents sticking. Make the dough: In a large bowl, cream 1/2 cup unsalted butter (softened) with 4 oz cream cheese and 1 cup granulated sugar until light and fluffy, about 2-3 minutes with a hand mixer on medium. Beat in 2 teaspoons vanilla extract, 1/2 teaspoon almond extract (optional), and 2 large eggs one at a time until combined. Scrape the bowl to ensure even mixing. Combine dry ingredients: Whisk together 2 1/4 cups all-purpose flour, 2 teaspoons cornstarch, 1 teaspoon baking powder, and 1/4 teaspoon salt in a separate bowl. Gradually add the dry mix to the wet ingredients on low speed until a soft, slightly sticky dough forms. Avoid overmixing to keep the texture tender. Spread and bake: Transfer dough to the prepared pan and press evenly using a spatula or the bottom of a measuring cup lined with parchment for smooth top. Bake at 350°F for 18–22 minutes, until the top is set and edges are lightly golden — the center should spring back gently when tapped. Cooling slightly before frosting prevents melting. Make the frosting: While the bars cool, beat 1/2 cup unsalted butter with 2 oz cream cheese and 1/4 teaspoon salt until smooth. Add 1/2 teaspoon vanilla extract, then mix in 2 to 3 cups powdered sugar one cup at a time until you reach a spreadable consistency. If frosting is too stiff, add 1 teaspoon milk at a time. Frost and decorate: When bars are cool to the touch but slightly warm, spread the frosting evenly and immediately add holiday sprinkles for festive flair. Allow frosting to set for at least 30 minutes before slicing into 12 equal squares using a sharp knife wiped clean between cuts.

Storage Tips

Store bars in a single layer or with parchment between layers in an airtight container. At room temperature they remain soft for 2–3 days; refrigeration extends life to about a week but may firm the frosting slightly — bring to room temperature before serving for the best mouthfeel. For long-term storage, wrap unfrosted bars tightly in plastic and foil and freeze for up to 3 months. Thaw in the refrigerator overnight and frost just before serving. Use shallow, rigid containers to avoid pressing decorations into the frosting.

Ingredient Substitutions

If you need dairy-free options, replace butter and cream cheese with firm vegan substitutes and use a vegan powdered sugar (check for bone char processing). For a gluten-free version, use a 1:1 gluten-free all-purpose flour blend that contains xanthan gum; note that the texture will be slightly crumblier. Swap almond extract for extra vanilla if nut allergies are a concern. For a lighter frosting, halve the butter and add extra cream cheese, or use a confectioners’ glaze for a glossy finish in place of full buttercream.

Serving Suggestions

Serve these bars on a festive platter dusted with extra powdered sugar or surrounded by fresh cranberries for color contrast. They pair beautifully with hot chocolate, mulled cider, or a bright cup of tea. Cut into different sizes: larger squares for dessert plates or bite-sized pieces for buffet-style serving. Garnish with edible gold flakes or a thin drizzle of melted white chocolate for an elevated holiday presentation.

Cultural Background

Sugar cookies and shortbread have long roots in European baking traditions, but the sheet-baked bar format is a modern American convenience adaptation. Turning classic cookie flavors into a pan bar became popular for community events where ease of transport and uniform serving sizes were important. The addition of festive sprinkles and flavored extracts reflects the modern holiday aesthetic — bright, colorful, and tuned to mass appeal at gatherings and school parties.

Seasonal Adaptations

For winter holidays, swap the sprinkles for crushed candy cane or finely chopped pistachios. In spring, use lemon extract and pastel sprinkles. During cooler months, add a pinch of cinnamon or cardamom to the dough for warmth. For Thanksgiving, top bars with a thin spread of pumpkin butter beneath the frosting for a seasonal twist. Small changes to extracts and toppings adapt the bars to any seasonal palette.

Meal Prep Tips

Make the dough ahead and refrigerate for up to 48 hours — bring to room temperature before pressing into the pan. Bake the sheet and freeze unfrosted; when you need them, thaw, frost, and add sprinkles. Cut bars into individual portions and pack in meal-prep containers with parchment to prevent sticking. These bars keep well enough to include in lunchbox rotation and make a convenient homemade treat for busy holiday mornings.

These Christmas Sugar Cookie Bars are easy to make, endlessly adaptable, and sure to become part of your holiday baking rotation. Whether you’re gifting a pan to a neighbor or laying out a tray for a festive party, they offer that comforting, buttery flavor everyone expects from a traditional cookie — but with less fuss and more shareability.