'James Taylor at Christmas' was released in 2006 by Columbia Records and Sony BMG, with mass distribution unlike its predecessor. The album includes most of the songs from 'A Christmas Album' from 2004, plus four additional tracks recorded specifically for this edition.
The new recordings for this album include 'Santa Claus Is Coming to Town', 'Baby, It's Cold Outside' (a duet with Natalie Cole), 'River' by Joni Mitchell, and 'The Christmas Waltz'. Production was again handled by James Taylor and Dave O'Donnell.
The album reached number 14 on the Billboard 200 chart and was certified platinum by the RIAA in 2016, becoming one of the most successful Christmas albums of the 2000s. The cover art shows Taylor in a winter landscape wearing a wool hat.