The Third Chapel of the Sacro Monte di Varese is dedicated to the Nativity and was built in 1605. It features grandiose architecture that reflects the importance of the event represented.

The chapel is oval in shape with a large portico at the entrance, which serves a dual purpose, both as a space for reflection and a shelter for pilgrims. 
The niches contain statues of St John the Baptist and Zechariah, attributed to Martino Retti. 
Through the gratings on the main window it is possible to see the terracotta figures of the crib, a masterpiece of Lombard art. Although there is no agreement on the artist of these works, most of them have been attributed to Marco Antonio Prestinari.
The frescos on the walls are by Carlo Francesco Nuvolone and show events linked to the life of Jesus Christ. On the left side is the Adoration of the Magi, dated 1658, the Announcement to the Shepherds, and the Slaughter of the Innocents. On the opposite wall is the Preparation for the Flight into Egypt and the Angel’s Warning to Joseph. The architectural representations are the work of Francesco Villa, a painter from Varese.
Between 1922 and 1923, due to damage to the walls, it was necessary to carry out significant restoration works, during which time it was possible to see the lower part of the walls that was restructured in the 20th century.