During the week of Christmas - December 23rd, 2005, and continuing on till January 3rd 2006 - Jagex released a special Holiday Event. Diango, who makes toys in Draynor Village, was in need of players' help. The pixies he hired to work often got excited and ended up destroying the work they completed. Players had to go to Diango's Workshop, and make enough marionettes to fill 1, 2, 4 or 8 boxes. Each box held up to six marionettes, two of each of the three colours: Red, Blue and Green. Once the boxes were full, players had to deliver them to the hooded stranger near the gates to Taverley.

Jagex also added a Christmas Tree to Varrock centre. It hadn't been decorated at first glance, so each player was given the task of preparing the baubles and helping to decorate the tree in exchange for a reward. To make Baubles, players had to talk to Rosie (in Diango's workshop in north-east Draynor Village), and ask about making baubles. The eastern room of the Christmas dungeon held the unpainted baubles, so players had to grab five of each type and head west, to paint them. Upon completion, players had to ask Rosie for a box to put them in, carrying only have one empty box at a time, they then had to give 1, 2, 4 or 8 full boxes to Rosie in order to get the four different types of scarves from Diango. In addition, players needed five boxes of baubles to decorate the tree in Varrock. Once players had the boxes, they headed to Varrock center and used them on the tree. Upon completion, they received a blue, green or red puppet as a reward. Also, numerous non-attackable Christmas imps spawned within the major cities. When clicked upon the player would proceed to grab the imp and turn it upside down and shake it, receiving a fairly useless item pertaining to the Christmas event or an item that a regular imp would drop.