The display was put up by air base chaplains.
A national organization called "The Military Religious Freedom Foundation" demanded the display be removed or relocated. The group believes the display endorses the beliefs of two mono-theistic religions and wants to protect service members from religious attacks.
But the Air Force Judge Advocate General's Office decided the Christian and Jewish symbols do not violate the constitution, and many supporters agree.
"I agree with them. I think it should stay. Freedom of speech," said Jody Ballard who supports military's decision.
"People come in. War's over. People wanna see good things. Good cheer. Why would you move it?" asked Ozzie Williams.
The military now says the statues of Joseph, Mary and Jesus won't be evicted from the Fairfield Air Force base.