Barbra recorded four Christmas songs on June 25, 1966 while she was in London performing Funny Girl at the Prince of Wales Theatre. With arrangements by Ray Ellis, the songs were recorded at London's Olympia Sound Studios: The Lord’s Prayer, I Wonder As I Wander, Silent Night, and Gounod’s Ave Maria. Then, four months later on October 31, 1966 she remade “Silent Night” with Ray Ellis again arranging and conducting. During the London sessions, Barbra recorded two versions of “Gounod’s Ave Maria” – one in English. In 2005, Sony/BMG licensed the English version to a Starbucks' compilation Christmas CD called Baby, It's Cold Outside. It had never appeared on a Streisand album before that.
Producer Ettore Stratta remembered that Barbra insisted on different interpretations without traditional arrangements for these songs. “It was thrilling to see and hear her,” Stratta said. “She was so happy—she was having a baby, and she would soon be going home. It was a very good time for her.”
With a Fall 1967 release date in mind, Streisand recorded the rest of the album while she was in Hollywood making the Funny Girl movie. The sessions were on September 9th and 16th, 1967 – both with Marty Paich arrangements.
Producer Jack Gold said “[Barbra] didn't want to do [“White Christmas”] because it was too closely associated with Bing Crosby. I remembered that it had a special verse, an introduction that Irving Berlin wrote about being stranded in Beverly Hills on Christmas Eve, with the sunshine and palm trees.” Streisand liked the verse and recorded the song for the album.
“I was actually a bit dissatisfied with my original Christmas album, which I made when I was pregnant with Jason,” Streisand confessed in 2001. “I was sick and had laryngitis, but we had an orchestra booked in London and I had to sing for three days. I never felt it was good enough, and I always thought I must do another one when I'm not hoarse.”