One of the largest Christmas markets in all of Germany takes place in Munich's Marienplatz.
Located next to the famous "Rathaus" or City Hall, you can find just about everything from Christmas decorations, and lace to jewelry and food stuffs. If you get cold, don't worry there is plenty of schnapps and Gluhwein to help you warm up.
I would love to know where they find a pine tree (or fir or spruce) that large every year. The Christmas tree in front of the building was real - and smelled great!
Below are some helpful links if you are planning a trip to this area.