Christmas Eve is so significant in O. Henry's short story "The Gift of the Magi" because it presents the opportunity for the exchange of tangible gifts, as is customary during the holiday season.
The story focuses on Jim and Della, a young, impoverished couple who cannot afford to purchase presents for each other for Christmas. Both Jim and Della are so committed to expressing their gratitude for each other that they each separately go out and secretly sell their most beloved possessions--Della's long hair and Jim's watch--in order to scrounge up enough money to buy each other a treat.
The irony of this situation is that these gifts ultimately are rendered useless by the sacrifices that enabled them to be purchased: Della buys a chain for the watch Jim no longer owns, and Jim presents Della with combs for the hair she has cut off.
Ultimately, the couple's willingness to give up what is most precious to them is a testament to their incredible love for each other and a beautiful example of the spirit of giving that is a part of the Christmas season.
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