Paint the shed a gingerbread color with exterior paint. Paint the support beams, window fixtures and roof overhang white to resemble snow and the door white or red.
Dangle LED white icicle light strands around the roof, and hang peppermint candy light strands or candy cane rope lights around the windows, door and on nearby trees or shrubs.
Hang a Christmas wreath on the door, and hook candy tree ornaments such as peppermints and candy canes around the wreath. Stand illuminated gingerbread girl and boy lawn ornaments on either side of the door.
Hang candy-themed curtains, with the candy images facing outward from the inside of your shed, or affix candy-themed window stickers on the glass panes.
Line candy cane pathway stakes across from each other to create the appearance of a walkway leading to the shed.
Create candy lawn ornaments. Purchase large, multicolored foam circles, and wrap each foam circle in see-through contractor’s plastic, leaving slack on both ends. Twist the ends, and tie them with ribbon or rope to create a candy wrapper around the foam circle.
Prop the faux candies against the house and in nearby trees or shrubs. Alternatively, attach hooks to the candy wrappers to hang them from the front roof of the shed and tree branches.
Make faux lollipops. Spray-paint round polystyrene foam cake dummies in the colors of your choice, and then allow the spray paint to dry. Stick white stakes through the bottom of each cake dummy to create lollipops. Cover the top of the lollipops with see-through contractor's plastic, and tie them with ribbon where the dummy meets the stake. Stake the lollipops in the ground around the shed.