The Elf on the Shelf is a holiday tradition that began in 2005. It was created by Carol Aebersold and her daughter Chanda Bell, who wrote a book about a mischievous elf who reports to Santa every night. The elf sits on a shelf or in a tree and watches over the children, reporting back to Santa if they've been good or bad. The elf is a magical creature who can move around the house while the children are asleep, and the children are encouraged to name their elf and come up with creative ways to play with it.