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Hours are from 10 a.m. to 6 p.m. both days at the Masonic Lodge at Jefferson and Van Buren streets.
Admission is free.
The hall will be filled with hand-crafted jewelry, purses, scarves, mosaic-glass candle-holders and other items for holiday gift-giving.
The Gifts for Home & Garden section returns with merchandise donated by Toland Home & Garden of Port Townsend.
Photographer JJ Jenkins will take photos of families and pets with Santa, with pictures processed for same-day pickup.
More than 2,000 freshly baked cookies will be offered, with cupcakes and handmade candy added to the treats for sale.
To fortify shoppers, a variety of homemade soups and hot beverages will be available for purchase.
A raffle benefiting the Port Townsend Winter Shelter offers a Seattle Getaway, including hotel and dinner, with concert and museum passes for two.
Half of ticket sales for the raffle will be donated to the Community Outreach Association Shelter Team to assist with operating expenses for the winter shelter at the American Legion Hall.
A supervised activity room will be available for younger children.
Silent-auction items include passage for six on the 42-foot power yacht MY Serendipity and live music for a private party or event.
New this year will be psychic readers offering tarot, astrology and hand-reading.
Luminaria kits will be available to light pathways and porches this holiday season.
The Festival of Lights is sponsored by Unity of Port Townsend.
For more information, visit www.unitypt.org or phone 360-385-6519.