A new cultivar of Hydrangea macrophylla named `Dancing Snow` that is characterized by its early spring blooming habit, its ability to re-bloom on new growth after deadheading into fall, its lacecap type inflorescences comprised of a ring of large double white flowers emerging from the central mass of smaller double white flowers, its flowers that are resistant to sun scorch, its compact growth habit, and its hardiness at least to U.S.D.A. Zones 5 to 9.