Meghan Markle, Prince Harry Celebrate First Christmas As Family Of 4 With Daughter Lili

Meghan Markle and Prince Harry celebrated their first Christmas as a family of four since welcoming daughter Lilibet "Lili" Diana earlier this year.

An unnamed friend of the Duke and Duchess of Sussex told People that the couple was "gearing up for the holidays," adding, "They are loving life in California."

Prince Harry and Markle spent their first Christmas with their son Archie, now 2, in 2019 with some family time in Canada, after marking the holiday with Queen Elizabeth and the rest of the royal family at Sandringham in England in 2017 and 2018. Last year, the Sussexes celebrated their first Christmas after stepping back as working members of the royal family in California.

This year, the Sussexes marked the holiday with Archie and their now-6-month-old daughter in their mansion in Montecito, Santa Barbara, following a whirlwind fall, which saw Markle and Prince Harry make two back-to-back trips to New York City.

"They love it in N.Y.C., but they were ready to go home and get back to the kids. Meghan was starting to feel homesick," the friend added.

Last year, an unnamed insider told People that Markle wanted to make the holidays special for her husband, who was marking his second Christmas away from the U.K. at the time.

"They are creating their own traditions at their new home," the source added.

The couple has now shared their new holiday traditions with baby Lili. The proud parents have said that their daughter "completes" their family alongside Archie.

"They are so happy," a close friend, who was not named, previously told the outlet. "This baby solidifies that they are creating roots here in the States."

On Thursday, Prince Harry and Markle shared the first photo of Lili on their new holiday card. The photo, which was taken over the summer at their home in Santa Barbara, shows Archie sitting on the duke's knee as Markle holds up her daughter.

"This year, 2021, we welcomed our daughter, Lilibet, to the world. Archie made us a 'Mama' and a 'Papa', and Lili made us a family. As we look forward to 2022, we have made donations on your behalf to several organizations that honor and protect families – from those being relocated from Afghanistan, to American families in need of paid parental leave," the couple wrote.

Markle's friend and makeup artist Daniel Martin, who reunited with the Duke and Duchess of Sussex on Nov. 10 for the former "Suits" star's appearance at the Intrepid Museum in New York City, previously told People that the Sussexes "are loving life as a family of four."

"They've struck a rhythm as a foursome," Martin added.

Martin, who did Markle's makeup for her 2018 royal wedding to Prince Harry, described their reunion in the Big Apple as fun, chill and relaxed. According to him, the prince joked around a lot, while the duchess was "really funny."

"It was nice to have those belly laughs again!" the makeup artist said.

As for the royal family, Queen Elizabeth II marked her first Christmas without her husband Prince Philip, who passed away in April at the age of 99. She honored the Duke of Edinburgh in her 2021 Christmas message.

"Although it's a time of great happiness and good cheer for many, Christmas can be hard for those who have lost loved ones. This year, especially, I understand why," Queen Elizabeth II was quoted by People as saying in her speech Saturday.

"But life, of course, consists of final partings as well as first meetings; and as much as I and my family miss him, I know he would want us to enjoy Christmas," she added.

The Queen stayed in Windsor Castle for the holiday break this year amid the surge in COVID-19 cases across the U.K., while Prince William, Kate Middleton and their children reportedly celebrated Christmas at their Norfolk country home, Anmer Hall.