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The armoured personnel carrier was filled with individuals on a pub crawl before it got wedged in the village of Angarrack, Cornwall.
Lee Gribble told Sky News that he saw the tank earlier in the day making its way through Helston town centre.
Fisherman Ian Jepson, who captured video footage of the festive traffic jam, told the BBC that the lane was blocked for about two hours.
"They shot past me singing and we later found them stuck where the lane narrows," he said.
"It was quite funny as they tried to free themselves."
Devon and Cornwall Police were called to the scene at around 7.40pm on Thursday following reports that a vehicle had been damaged and no arrests have been made.