Making an elf on the shelf involves several steps. First, gather the necessary materials like fabric, stuffing, wire, and thread. Cut out the elf's shape, sew the pieces together, and stuff with the stuffing. Next, add wire to the arms and legs for posing, and sew the elf's head to the body. Finally, add the finishing touches like hair, eyes, and accessories like a hat or scarf. Now your elf on the shelf is complete and ready to spread Christmas magic!