The festive favourite, written in 1944, has come under fire recently for its lyrical content, which features a man trying to convince his girlfriend to spend the night by plying her with drinks and assuring her it's too cold to leave.
In a video on Instagram, the "Independence Day" star asks his family to sing along with the cue cards he has created, only for Willow to use the props to show her famous father why the tune is not the best choice for their holiday get-together.
"I have loved 'Baby, It's Cold Outside' my whole life!," he wrote on the social media site. "Nobody in my house would Sing it with me. I made Cue Cards & Everything."
Despite Willow's reluctance to sing "Baby, It's Cold Outside", the Smith family went all out to celebrate the holidays after deciding to stay home in Los Angeles at a time when they usually travel.
"We usually go out of town for Christmas, so we didn't usually decorate," he explained in another video on Instagram. "So Jada (Pinkett Smith, wife) decided to decorate this year."
"Christmastime Jada is on Full Blast out here!" he added in the caption. "She bought every Christmas light (superstore) costco had and hung 'em in the living room. Thank u babe, this is beautiful!! @jadapinkettsmith (sic)."
The actor then showed fans clips of the decorations all over the house, with the footage concluding with his family all dressed up in their "Christmas clothes".