The Elf on the Shelf is a popular Christmas tradition that began in the early 20th century. It involves placing an elf doll in a different location each day, as a way to help Santa know if a child has been naughty or nice. The elf doll is said to have magical powers that allow it to report back to Santa at night, and if a child has been bad, the elf will be moved to a new location as a warning. The tradition is meant to encourage good behavior and teach children about the importance of doing the right thing.