Elf on the shelf is a holiday tradition where an elf is placed in a prominent location in a child's home to encourage good behavior and remind them that Santa is watching. The tradition dates back to 1970 when a mother created the idea of an elf who would monitor children's behavior and report back to Santa each night. The elf is usually placed on a shelf or in a visible location where children can see it, and the elf is supposed to move around the house every night while the children sleep.