When decorating for your Ugly Sweater party, think the uglier the better. Create an over-the-top look with tacky accents and mis-matched prints in bright red and vivid green.
Set the mood by hanging a cheeky sign from the door encouraging rowdy behavior. When guests arrive give them a Christmas stocking shaped beverage holder and a black sharpie. Have them write their name on the stocking to prevent lost drinks.
Cover the table with a garish poinsettia tablecloth. Hang lights and wrap beads around banisters and staircases. Light candles and a fire in the fireplace.