Etymology
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holiday (n.)

1500s, earlier haliday (c. 1200), from Old English haligdæg "holy day, consecrated day, religious anniversary; Sabbath," from halig "holy" (see holy) + dæg "day" (see day); in 14c. meaning both "religious festival" and "day of exemption from labor and recreation," but pronunciation and sense diverged 16c. As an adjective mid-15c. Happy holidays is from mid-19c., in British English, with reference to summer vacation from school. As a Christmastime greeting, by 1937, American English, in Camel cigarette ads.

holiday (v.)

"to pass the holidays," 1869, from holiday (n.).

updated on August 03, 2015

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Definitions of holiday from WordNet
1
holiday (n.)
leisure time away from work devoted to rest or pleasure;
we took a short holiday in Puerto Rico
Synonyms: vacation
holiday (n.)
a day on which work is suspended by law or custom;
no mail is delivered on federal holidays
it's a good thing that New Year's was a holiday because everyone had a hangover
2
holiday (v.)
spend or take a vacation;
Synonyms: vacation
From wordnet.princeton.edu, not affiliated with etymonline.