The streets leading to the coastal villages were jammed with the vehicles as tourist inflow is also on rise for Christmas and New Year celebrations.
While tourists were busy partying on the beaches, the local people were seen attending midnight masses, followed by Christmas celebrations in their parish.
Traditional dance parties were organised at various places to usher in the festive season.
Hours before the religious prayers, the markets across the state were filled with people busy with their shopping.
"The biggest crib you will find at Velsao (a beach village 45 kms away from Panaji). Youths are busy getting crib sets of every size. Few of them have a touch of innovation," said John Rodrigues, a parishioner with Mary Immaculate Conception Church, Panaji.
At the Panaji church too, a larger than life size crib has been set up which has turned into a major tourist attraction.
People thronged the famous Church square in the city to click pictures and have a glimpse of the crib.
"On this happy occasion of Christmas, we cannot but echo this hymn of joy, the joy of the birth of Jesus, the Son of God made man. Sharing in the joy of the Christian community, on their behalf and in my name, I extend greetings of peace and truth, mercy and kindness to all people of good will in this state," the message read.
"If the Holy Babe lies helpless in the crib, we feel encouraged to approach him with the situations of unrest in the world, in our country and in our state, but especially in our families, asking Him to help us seek peaceful solutions, while respecting the legitimate aspirations of individuals, families and people.
Citing the 'Year of Mercy' declared by Pope Francis, the Archbishop called for prayers for "more understanding, more mercy, more reconciliation and peace.
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