Amy Grant wrote this song with her husband Vince Gill. She explained to Billboard magazine: "On 'Baby It's Christmas,' Vince was kind of messing around with those chords and it just sounded romantic. We wrote that over a cup of coffee one morning. I don't think anybody really thinks about Christmas Eve as being the most romantic time, especially if you have children, because you are exhausted. But if you could have a very romantic Christmas Eve, what would it be like?"