The festive short film follows a string of families celebrating Christmas Day as they prepare dinner, pull crackers and feast on leftovers.
One scene shows a Muslim family greeting each other with gifts as they arrive at someone’s house.
The clip sparked a racist backlash with some deeming the clip “very wrong” while others vowed to boycott the supermarket.
One user tweeted: “I wonder will they have a white family celebrating a Muslim holiday.... political correctness is ruining this country. Tesco have lost my £.”
Another wrote: “How dare you feature a Muslim family in your CHRISTMAS advert!!! They do not celebrate CHRISTIAN festival! #willnotshopintesco.”
Tesco hit back, saying the ad was intended to show how people “come together at Christmas”.
In a statement a spokesperson said: “Everyone is welcome at Tesco this Christmas and we’re proud to celebrate the many ways our customers come together over the festive season.”
The supermarket added that the Christmas campaign “will celebrate the many ways we come together at Christmas, and how food sits at the heart of it all”.
The short film sees Paddington Bear befriend a thief and help him change his ways, with the man thanking the children’s character for his assistance.
But some viewers claimed the man didn’t say “Thank you, little bear,” but instead told Paddington: “F*** you little bear”.