The Elf on the Shelf is a magical toy that Santa sends to a family's home to watch over the children and report back to Santa. Each day, the elf will move to a different location in the home to observe the children's behavior. The elf will also interact with the children by playing games or giving them little gifts. The goal of the Elf on the Shelf is to help Santa determine which children have been good and which ones have been bad.