The illuminated wonderland captivated children yet again this year, and even won the heart of the Illawarra Mercury's editor who named it the winner of the Mercury's Christmas lights competition for the second year in a row.

Craig Hughes said he has no idea how many lights have gone into his creation.

"I gave up counting," he said. "There's something different every year, people expect to see something different."

Mr Hughes first began decorating his house at Christmas time to bring some cheer to his father who was suffering from cancer.

Now it has become a Christmas tradition which climaxes on New Year's Eve.

"It's absolutely hectic," he said.

Winning for a second year was a "wonderful surprise".

Mercury editor Stuart Howie judged the finalists.

A self-confessed Christmas lights junkie who has run similar competitions in other regions, Mr Howie said he never ceased to be amazed by the efforts put in by entire families.

"Thank you to all the entrants in our lights competition. They have really contributed to a sense of joy in communities across the Illawarra."

He said the Mt Warrigal house was a standout. "You have to see it to believe it. I think even Santa's workshop staff would have been impressed."