According to the charity, the CD print computer was "hacked" by neo-Nazi activists.
Families woke up across Germany on Christmas Day to play what they thought were religious melodies - and instead got tunes including The Rotten Bones Are Trembling, the official anthem of the Nazi youth movement.
Its lyrics run: 'We will continue to march/ Even if everything shatters/ Because today Germany hears us/ And tomorrow, the whole World!'
A line in another, Germany Awake!, reads: 'We are the fighters of the NSDAP/ True Germans in heart, firm and tough in our struggle. 'To the Swastika, devoted are we/ Hail our leader, Hail Hitler to thee!'
The most shocking tune copied on to the CDs was Blood Must Flow, which runs: 'Sharpen the long knives on the pavement/ let the knives slip into the Jew's body/ Blood must flow, a whole lot of it/ and we s*** on the freedom of this Jew Republic.'
Some 50,000 of the Christmas carol CDs were sent to households in Germany by the SOS Children's Villages charity.
Roger Damm, spokesman for the organisation, said it seemed that the computer which recorded them had been hacked by a neo-Nazi group.
'We have had many complaints that we were spreading Nazi hate propaganda,' he added.
Only in Germany.