The church was reportedly packed and the congregation sang carols, joining a choir put together for the occasion by organist and choirmaster John Riley with solos from King William’s College pupils Jessie Quigley and Seb Sgoura.
There was a retiring collection in aid of the RNLI which raised £600.
The festivities were added to by the decorated Douglas lifeboat Ruby Clary making its way to the inner harbour and mooring alongside the church.
The Douglas crew joined the congregation and afterwards everyone was invited outside to see the boat and take photographs.
A spokesman for Douglas RNLI said: ‘Whilst this was happening the boat was still on operational service and the crew were fully prepared to remove the lights should we have received a service call.’
The service which was led by vicar the Rev Dr Michael Brydon.