Last year, the relationship was too young for Chris to invite her, according to E!, but this year the couple spent the holiday on the East Coast with Gwyneth, her husband Brad Falchuk, and the Paltrow-Martin children.
"Gwyneth thinks [Dakota] is lovely. She gets on very well with her and is happy for Chris," a source told E!. "They've spent a good amount of time together and have a very nice friendship."
Chris and Gwyneth's two children, Apple and Moses, don't mind having Dakota around, either. "The kids really like Dakota and enjoy spending time with her," the source said.
The couple is taking this whole #modernfamily thing seriously, apparently. During the holiday season last year, Gwyneth shared this photo of Chris and Brad together.
And they all vacation together so that the kids can spend time with both parents.
"Gwyneth and Chris have the modern family thing down pat and continue to vacation and spend family time together. Especially on holidays, Gwyneth wants nothing more than to be one big happy family and for her kids to be able to celebrate with both of their parents," the source said.
"She is very happy she and Chris have been able to make this work so well...It's very special that they're all able to come together like this and make it work."
Sounds like one big happy family!
Follow Emma on Instagram.
This article originally appeared on Cosmopolitan.com. Minor edits have been made by the Cosmo.ph editors.