She will most likely grow out of it. it is a very crazy time of year and would scare a little puppy. you should work with her play put her around kids,other people and have positive meetings that should work. good luck HAPPY HOLIDAYS
she is at the age now where she is going through her first fear period. it is very important that you start socializing her now, but more importantly that every experience she has is a positive one. do not coddle her when she seems to be afraid of something as that only reinforces that she should be afraid of it. she will go through another fear period when she is aroun 6-8 months of age. if you socialize her really well at this age you may not even notice her second stage.
Nakitas mom: I totally agree with Scout1. I have a gferman shepherd/chow mix and have had other german shepherds from puppyhood(though not this one) I agree with the socialization,cos if you leave it unchecked she could get into fear agression and that is tough to train her out of when she gets older. Better to socialize her now with a huge amount of reassurance and a lot of loving attention and doing new things with her often so that the intimidation of new things will cease to be something to fear especially if YOU introduce her to them with lots of praise and gentleness and confidence shown in her. she will pick up on your confidence in her and will bloom. Animals(not just dogs) also pick up on human's emotion so keep the anxiety out of your head and she will feel assured and become brave through your love for her.