The elf on the shelf is a Christmas tradition that began in 2005, where a toy elf is placed in a home by Santa Claus to keep an eye on children's behavior and report back to him. The elf is placed in a new spot each night and is said to fly back to the North Pole every night to share a report with Santa about the children's behavior. It is a fun way for children to interact with the Christmas magic and get excited about the holiday season.