I'm headed to NYC about 2 weeks before Christmas and I thought I'd do a few nights there, and a few nights in Philadelphia. Then I wondered if there were any small towns that would be fun for a few nights. I haven't been to Vermont and that's fairly high on my list, so I'm specifically interested in suggestions for that, but if you have a favorite place elsewhere, I'm open to anything. Trains would be preferable, as always, but I could rent a car if needed.

Thanks!

New Hope & Lambertville would fit the bill. I found this description on-line.....



New Hope and Lambertville sit on opposite sides of the Delaware River in the western part of New Jersey and eastern Pennsylvania and have very different personalities. New Hope is funky, eccentric and edgy. Lambertville is more sophisticated, conservative and quiet. Walk down the street in New Hope and you'll see hippies, bikers, gays and baby boomers all coexisting in seeming harmony. In Lambertville you will be more likely to encounter New York interior designers searching for antique treasures. Together they offer a wonderful weekend getaway opportunity.
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The area is idyllic with winding country lanes, stone farmhouses, historic inns, the vast Delaware River and the very unique canal system. In the 1830s canals were dug on both sides of the Delaware River (whose currents were too strong for boat transportation) to transport coal from Pennsylvania and northern New Jersey to Trenton. Mules on the banks of the canals (towpaths) pulled the canal boats along the canal to its destination. Today, the towpaths are used for walking, biking and horseback riding and mule pulled canal boat rides are available for tourists.
New Hope is a charming collection of off-beat shops, restaurants, B&Bs and historical sites. Across the river, Lambertville is the antique capital of the east, the place where many out-of-town interior designers come in search of 18th and 19th century American and English antiques. There are over 20 antique galleries in Lambertville alone. The town also boasts 15 art galleries featuring the works of local and international artists.
This area is perfect when you want to get away but are looking for a more relaxed weekend. This is a place where you wont feel the pressure to cram a lot of activity into a few days. The pace is slower, more leisurely. It is the perfect destination to just get away and recharge the batteries and come home refreshed.

Bethlehem PA would be the ideal place to visit, particularly during the Christmas Season. If you go stay in the Hotel Bethlehem.

https://historicbethlehem.org/

Bethlehem has a German style Christmas market. About two hours away is the town of Mifflinburg, which also has a Christkindl market.

Mifflinburg's market will be Dec 14-16:

http://www.oldchristkindl.com/

While you are in the Philadelphia area, you may want to include a visit to Longwood and to Winterthur in the Brandywine Valley. Both have renowned Christmas displays.

https://longwoodgardens.org/events-a...wood-christmas

http://www.winterthur.org/?p=1189