Jolly, a. [Compar. Jollier; superl. Jolliest.]
Etymology: [OF. joli, jolif, joyful, merry, F. joli pretty; of Scand. origin, akin to E. yule; cf. Icel. j yule, Christmass feast. See Yule.]
1. Full of life and mirth; jovial; joyous; merry; mirthful. Like a jolly troop of huntsmen. Shak. "A jolly place," said he, "in times of old! But something ails it now: the spot is cursed." Wordsworth.
2. Expressing mirth, or inspiring it; exciting mirth and gayety. And with his jolly pipe delights the groves. Prior. Their jolly notes they chanted loud and clear. Fairfax.
3. Of fine appearance; handsome; excellent; lively; agreeable; pleasant. "A jolly cool wind." Sir T. North. [Now mostly colloq.] Full jolly knight he seemed, and fair did sit. Spenser. The coachman is swelled into jolly dimensions. W. Irving.
Shades of meaning
Fernald has no entry of its own for jolly; he lists it under happy.
He lists it without comment; the entries above explain its neighbors.