Martha Stewart may be used to celebrating Christmas with Hillary Clinton or The Muppets' Miss Piggy, but unlike her 1995 CBS special, "Martha Stewart Home for the Holidays," this Christmas, the tastemaker will not be home -- but she will be in the hearts of her fans and friends, like Rosie O'Donnell.

"My holiday wish for her I wish for everyone," Rosie told us. "Everybody should be surrounded by family and people they love."

"Extra" visited the sleepy town of Alderson, West Virginia, down the road from the federal prison where Martha is being held, and found it decked out for the holidays. Amid the decorations, a sign in a store window read, "See you in the spring, Martha, in the garden."

"Our business has just been wonderful since Martha came to town," shop owner Betty Alderson said to "Extra." She revealed she's been selling plenty of Martha's Christmas decorating books and T-shirts customized with Martha's catch phrase: "West Virginia living -- It's a Good Thing." Nita Rousch, of Alderson's Main Street Organization, told us Martha's relatives even bought one. "They didn't seem to be angry," Nita noted. "They seemed to be amused."

Alderson's mayor, Luther Lawallen, Jr., told us about a holiday tradition at the prison: the inmates have a Christmas decorating contest. "They have judges who come in from the outside and decide who a winner is," Lawallen laughed, "And the inmates, it gives them something to look forward to."

No doubt Martha is most looking forward to spending time with her family this Christmas. Her daughter, Alexis, has been a regular visitor, and even Martha's 90-year-old mother is expected to make the nine-hour drive from Connecticut to see her -- and Martha's friend, Gotham magazine gossip columnist R. Couri Hay, told us how much this means, "It is very difficult for big Martha -- Martha Stewart's mother -- to make the trip."

Hay also shared with us his favorite story about Martha's jail time. "Martha and her daughter were laying on the grass and someone came over and said 'what are you doing?'" Hay recounted. "Martha looked up and said 'we're at the beach.' So she just completely sees only the positive things."

With her family by her side, Martha Stewart is sure to make the most of her Christmas in captivity.