A Nativity scene that has been on display in front of a Dallas, North Carolina courthouse for the past 40 years was removed following atheist complaints.

The Freedom From Religion Foundation (FFRF) complained that the display violated separation of church and state mandates, and the small town moved the scene to private property.

The controversial display features a manger with Mary, Joseph, and baby Jesus inside. An angel hanging overhead holds a banner reading "Gloria in excelsis Deo." Now, that Nativity scene sits outside a local auto shop.

The old Gaston County courthouse now has reindeer, a Christmas tree, snowman, and wreaths on its lawn in what is considered a religiously-neutral display. Coleman Montgomery, 12, said that is a problem.

"Christmas is not about snowmen, reindeer, Christmas trees, lights—it's about Christ," he told Fox46 Carolinas.

"When it comes down to it, people don't like to hear the name of Jesus," local pastor Brandon Fries explained. "They don't like to deal with him."

In protest of the Nativity scene's removal, hundreds of citizens converged on the courthouse lawn and staged a live Nativity. Men, women, and children dressed as angels, animals, and Mary and Joseph, and carried baby dolls to symbolise baby Jesus. The group prayed and sang Christian songs such "Oh, How I Love Jesus" in a display of religious solidarity.

"Our faith is based on a real person, and a real thing, and that's Jesus Christ," Pastor Fries said. He also had no objection to other faiths displaying their religious figures in public spaces.

"It's America, freedom of religion," he began. "They can put theirs up, long as we can put ours up too."

The FFRF has not released a comment regarding the controversy.