Canon Farrar accepts the traditional belief that the shelter within which Jesus was born was that of one of the numerous limestone caves which abound in the region, and which are still used by travelers as resting places. He says: "In Palestine it not infrequently happens that the entire khan, or at any rate the portion of it in which the animals are housed, is one of those innumerable caves which abound in the limestone rocks of its central hills. Such seems to have been in the case at the little town of Bethlehem-Ephratah, in the land of Judah. Justin Martyr, the Apologist, who, from his birth at Shechem, was familiar with Palestine, and who lived less than a century after the time of our Lord, places the scene of the nativity in a cave. This is, indeed, the ancient and constant tradition both of the Eastern and the Western Churches, and it is one of the few to which, though unrecorded in the Gospel history, we may attach a reasonable probability."
Source: Farrar in The Life of Christ, chapter 1, quoted by James E. Talmage, Jesus the Christ, Ch.8, p.106
Contributed by: Zaady