Network Rail has warned some residents in Bedminster and Ashton Vale that it will be carrying out 12 hours of piling work from 3:00 GMT on Christmas day.
Local resident Kirsty Stephens, said: "It's absolutely disgusting - they're not considering anybody really."
Network Rail apologised but told residents with "no trains" it was able to "get a huge amount of work done".
As part of the new Â£200m "rapid transit" bus route through Bristol, Network Rail has been carrying out works including "vibration piling" at South Liberty Lane.
But Tess Smith, who lives in Ashton Vale, said the company had failed to tell households about the overnight work.
"The noise starts at one o'clock and it's so loud like an industrial angle grinder," she said.
"The bungalow vibrates with the noise, the whole building is shaking - they should do this during the day when people are awake."
Ms Stephens, who also lives in Ashton Vale, said the "loud vibrating" noise had been waking her up at 01:00 GMT since 11 December.
"It sounds like it's happening right outside our door - I thought somebody was digging up the road outside," she said.
"The Christmas period is family time and it's all going to be disturbed."
In a letter to residents, Network Rail said it "cannot stop or delay the project" as it has a contract with North Somerset Council to "deliver the works".
It said: "We will only be piling (which is the noisy work) from 3am Christmas morning until 3pm Christmas afternoon.
"Due to the nature of piling works, it is very difficult to reduce the level of sound and because of the location of works; sound augmentation panels would not be effective."
Residents kept awake by building work on the new Bristol Metrobus have been told work will continue over Christmas.