Santa's Workshop or Santa's Grotto, is the workshop where Santa Claus makes the toys and presents given out at Christmas. In Santa Claus mythology, the workshop is a sprawling complex located at the North Pole or in Lapland. In addition to housing the factory where toys are either manufactured or distributed by the elves, the complex also houses the residence of Santa Claus, his wife, and all of the reindeer.

In the 20th century it became common during December in large shops or department stores to have a "cavern" in which an actor dressed up as Santa Claus would give gifts to children. Grottos can be large-walk through fantasy cavern-like areas incorporating animatronic characters such as elfs and pantomime characters. This tradition started in Britain in 1879 and then extended in the 1890s to Australian and American department stores seeking to attract customers.

The world's first Christmas grotto was in Lewis's Bon Marche Department Store in Liverpool. The grotto was opened in 1879, entitled "Christmas Fairyland". Many generations of people across Britain first visited Father Christmas here and it is a tradition which is carried on by Lewis's to this day. The grotto now covers over 10,000 square feet (930 m²) and is a staple of Liverpool's festive season. The grotto became 130 years old in 2009.