A holiday train decorated with Christmas lights thrilled locals in Indiana.

Residents gathered to witness the CPKC Holiday Train, illuminated with colourful LED lights, as it passed through Ogden Dunes on November 26.

Footage shows families eagerly waiting along the tracks.

Moments later, the festive train arrived, featuring animated Christmas characters on its cargo cars, such as the Nutcracker, elves, reindeer, and Santa Claus, all accompanied by cheerful music to amplify the holiday spirit.

Onlookers can be seen cheering at the dazzling spectacle.

The Holiday Train is now in its 26th year, embarking on a four-week charity fundraising mission across the United States and Canada.

It began its route in New Brunswick, Canada, on November 21, and is making its way through U.S. railways, from Maine to North Dakota.