This paper examines the enduring appeal and increased popularity of the 1946 film It's a Wonderful Life. Kleinian theory is applied in identifying the emotional themes that emerge in the course of the narrative. There is an exploration of the meanings of Christmas as an ‘invented tradition’, with reference to social and anthropological literature. It is proposed that Christmas serves an important cultural function in keeping with that of a ritual. The themes that emerge in the analysis of the film are linked to contemporary cultural concerns that are particularly relevant to the Christmas period.