Oh dear. The Elf on the Shelf is a beloved holiday tradition for many families. Children all over the world have grown up with the elf, believing that he or she is watching over them and reporting back to Santa Claus each night. If the elf is touched, the magic is broken and the elf will not be able to move or report back to Santa. It's a special part of the tradition that must be respected, so the elf can continue to bring joy and magic to the holidays.