With a scarlet bow in her hair, and dressed in a cute white knitted dress adorned with red reindeers, Estelle eagerly hangs tinsel and decorations on the tree.
As the video draws to a close Victoria and Daniel each say "god jul", meaning Merry Christmas, to the camera.
Prince Daniel then reveals Estelle hiding under some cushions, before she bounces up on the sofa and says "god jul!"
This is the second year that Estelle has joined her parents in a cute Christmas video. In 2013 the youngster melted royal fans' hearts as she intently helped make gingerbread biscuits.
On Wednesday Estelle was charged with helping her mother accept the Swedish royals' Christmas trees at the Royal Palace in Stockholm.
The little future queen donned a festive red coat and warm boots as she followed first-in-line to the throne Victoria to greet the students from the Swedish Agricultural University presenting the trees.