The story of "Elf on the Shelf" began in the early 2000s when a family discovered a small elf doll perched on a bookshelf. They named him Buddy and were amazed to find that he moved around their house each day. This led to the creation of the book "Elf on the Shelf," which introduced the concept of a magical elf who reports back to Santa every day to tell him which children have been naughty or nice. This idea has since grown into a beloved holiday tradition, with parents buying their own elf dolls and giving them names for their children to discover each morning.