While the monarch spoke of finding hope in "moments of darkness", Reverend Justin Welby warned that the Islamic State (ISIS) is "igniting a trail of fear, violence, hatred and determined oppression".
"It is true that the world has had to confront moments of darkness this year, but the Gospel of John contains a verse of great hope, often read at Christmas carol services: 'The light shines in the darkness, and the darkness has not overcome it'," Queen's Christmas Day message read.
She writes her own address, which is one of the rare occasions when she voices her own views.
She was seen wearing a tweed day dress in white and silver for the address, which will be broadcast across Commonwealth nations at 0830 IST.
"Confident that these are the last days, using force and indescribable cruelty, they [IS] seem to welcome all opposition, certain that the warfare unleashed confirms that these are indeed the end times, said Welby, the spiritual leader of the world's 85 million Anglican Christians.