The president and his family woke up early Sunday to open gifts, the White House said, then had breakfast and sang Christmas carols at the multimillion-dollar house they rent in Kailua Beach, near Honolulu.
Obama made two trips on Christmas to nearby Marine Corps Base Hawaii, first to attend church services at the base chapel. The president dressed casually in dark khaki pants and a short-sleeve blue shirt, and his wife and daughters donned sundresses for Christmas services on a bright, breezy day on the island of Oahu.
After spending a few hours at their rental home, the president and Michelle Obama returned to the base to visit with several hundred service members and their families, as they have done in past years.
The Obamas posed for posed for photos, signed autographs and stopped to chat with the military families gathered in the dining hall, where roast beef, salad and apple pie were on the Christmas Day menu.
Eight-month-old Cooper Wall Wagner, son of Capt. Greg Wagner, got up close and personal with the president, grabbing his face, then sticking his fingers in Obama's mouth.
An amused Obama said he thought the baby just liked his "big nose" - a comment that drew laughter from several of the Marines.
Many of the service members stationed at Marine Corps Base Hawaii have deployed to Afghanistan, as well as Iraq, where the last American troops were withdrawn earlier this month.
Back in the Washington area, Vice President Joe Biden and wife Jill Biden spent Christmas visiting wounded service members and their families at Walter Reed National Military Medical Center.
Obama also called 10 service members stationed around the world - two from each branch of the military - on Christmas Eve. The White House said he thanked them for their service and the sacrifice of being away from their families at the holidays.
The Obamas were wrapping up their Christmas festivities with dinner at the rental home with friends and family. Among those joining the first family in Hawaii are the president's sister, Maya Soetoro-Ng, who lives on Oahu, and several friends Obama has known since high school.
The president has kept a low profile since arriving in Hawaii on Friday evening to start a vacation delayed by the stalemate in Washington over extending payroll tax cuts. He has no public events planned, and his only outings are expected to be to the golf course or to take his daughters for shave ice, a Hawaiian snow cone.
The Obamas are expected to return to Washington shortly after New Year's Day.
Associated Press writer Jaymes Song in Kaneohe Bay, Hawaii, contributed to this report.