Catholic Archbishop of Sydney Anthony Fisher said light would shine through the darkness following the anti-Semitic terrorist attack at Bondi Beach.
Two Islamic State-inspired gunmen killed 15 innocent people on December 14, which marked the start of Hanukkah, the Jewish festival of light.
"In a season when both Jews and Christians celebrate light and hope, we have been confronted with profound evil," Mr Fisher said.
"As many in our city grieve this Christmas, let us declare boldly: the light shines in the darkness, and the darkness has not overcome it.
"Christ, the prince of peace, is born among us. He walks with us through our darkest valleys, he offers comfort to the grieving, healing to the wounded, hope to the despairing.
"May God bless you and your loved ones this Christmas and in the Year of Grace 2026."
The 2025 Christmas message from the President of the Uniting Church in Australia Charissa Suli also proclaimed light would prevail in the face of fires, floods and conflicts that marked 2025.
In her Christmas message, Reverend Suli proclaims the light of Jesus Christ prevails and this is why "Christmas still matters".
"That light doesn't ignore the darkness, it transforms it, and it calls us to compassion, generosity and justice," she said.
Bishop of Parramatta Vincent Long called for Australians to act and help make a difference in the face of suffering and pain.
"Daily, our hearts continue to break when we see the violence, especially to children, in places like Gaza, Ukraine and Myanmar - we cannot just watch all this suffering in front of our eyes passively," he said.
"Together as the Body of Christ, we can make a difference.
"My prayer, therefore, is that each of you will feel God's closeness and become instruments of peace in the New Year ahead."
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