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There are many, many restaurants open in Manhattan on Christmas Day, but you need to travel outside of Times Square and the typical crowded places. I haven’t been to all of these, but they all have a 4.5-star rating or above, and they DO have plenty of seating. It is worth the taxi to travel to other places in Manhattan to find some tasty Christmas Dinners (or lunch!) in Manhattan:

Italian Restaurants open on Christmas

Mediterranean Restaurants

Steakhouses

Seafood