It goes back to Norse mythology. The goddess Frigga declared it to be the plant of love and couples who kissed underneath it would be blessed. Because it is bears its fruit in the winter time and it is colorful, it was adopted as a winter decoration and eventually found its way into the Christmas tradition.
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Also, Celtic mythology. Mistletoe was sacred to the Druids for a number of reasons, among them the abovementioned flowering and bearing fruit in the winter, plus the association of the white mistletoe berries with the semen of the god Taranis. By harvesting the mistletoe at the Winter Solstice, the druids were symbolically bringing the potency of the gods back to the earth so that the Spring would come again (this is way oversimplified, but you get the idea). So anyway, when the early Christian church was expanding and trying to convert people, they would frequently schedule their holy days to coincide with the pre-existing pagan holidays in order to make the locals more comfortable with the idea of conversion (News flash: Biblical scholars agree that Jesus was not actually born on December 25th). They would also adopt many of the symbols of the local religion for the same reason. Since Christmas was scheduled to compete with the various pagan Winter Solstice celebrations, mistletoe eventually got pulled in along with many other pagan symbols like the lighted tree, the yule log, and the custom of "decking the halls", along with many many others.
i just have one thing to say to you... celtics suck (even though i know your not talking about the boston celtics:))
It was around before modern Christmas was created, so it's "sill there at that time of year". You might ask what most seasonal things have to to with Christmas... L
Like the Christmas Tree - more "pagan" mythology.
Yep, it is. L