Xanthi is famous throughout Greece (especially in Macedonia and Thrace) for its annual spring carnival, which plays a significant role in the city's economy. More than 40 cultural associations from across Greece participate in the carnival program. Festivities during this period include concerts, theater plays, music and dance nights, exhibitions, a cycling event, street games, and the revival of ancient traditions.

Xanthi has a continental climate with Mediterranean characteristics. Summers are generally short, hot, and dry. Winters are cold, with showers and snowfall lasting from a few hours to several days, mostly in the mountainous regions. Humidity is relatively high throughout the year. One of the characteristic features of Xanthi is the very strong stormy winds, which occur mostly in winter and become more intense in intensity.

Traditionally, the main sources of income for the residents were the tobacco trade, trade, and farming. Tourism has also increased in recent years, especially during the "Old Town Festival."