It's starting to look a lot more like Christmas, now that Radio City Music Hall's orchestra is back to work.

The 35 musicians were greeted with warm applause at yesterday's 2:30 p.m. performance of "The Christmas Spectacular," the first they have played this season because of a labor dispute.

Audience members were unanimous in their praise of the show and thrilled with the return of the musicians, who rise to the stage on a hydraulic platform.

"I can see now why they are so important to the show," said Janice Entwistle, 51, of Bucks County, Pa.

"It does take the orchestra to give the show atmosphere," said Sarah Sims, 65, who was visiting from Northern Ireland.

The musicians had walked off the job at a Nov. 2 preview. When they tried to play at performances the following day, they were locked out.

The "Spectacular," which stars the high-stepping Rockettes, went on with recorded music until the deal on a new contract was reached Thursday. The breakthrough came after Mayor Bloomberg brought the warring parties together at Gracie Mansion on Monday.

Bob Goodenow, 84, of Baltimore, first saw the Radio City Christmas show in 1938 and was not let down by yesterday's version. "The whole show was just great," he said.

"You get chills with live music," gushed Gloria Traisci, who gleefully took a last minute ticket offered by a friend. "There's nothing like live music."

Musicians union President David Lennon said the deal "will guarantee live music at Radio City Music Hall for years to come. This is a win for the musicians, management, the City of New York and audiences from all over the world."