Elf on the Shelf is a popular holiday tradition that originated in Germany in the early 20th century. The idea behind the tradition is that Santa's elves, who are responsible for watching over children during the holidays, travel to children's homes to observe their behavior. Each night, the elf flies back to the North Pole and reports their findings to Santa Claus. If the child has been good, the elf will reward them with a small gift or a treat. If the child has been naughty, the elf will report that as well.