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Preheat oven to 350°F (175°C). Line a baking sheet with parchment paper.
In a large mixing bowl, beat the softened butter and powdered sugar together until light and fluffy (about 2–3 minutes). Add vanilla extract and mix until combined.
Gradually mix in the flour and salt until a soft dough forms. You may need to use your hands to bring it together at the end.
Gently fold in the chopped cranberries and pistachios until evenly distributed throughout the dough.
Divide the dough in half. Roll each half into a log, about 1.5 inches in diameter. Wrap in plastic wrap and refrigerate for at least 1 hour (or freeze for 30 minutes) until firm.
Once firm, slice the logs into ¼-inch thick rounds and place them on the prepared baking sheet, spacing about 1 inch apart.
Bake for 12–15 minutes, or until the edges are just starting to turn golden. Keep a close eye—shortbread should stay pale.
Let cookies cool on the baking sheet for 5 minutes, then transfer to a wire rack to cool completely.