The Elf on the Shelf is a Christmas-themed toy created by Caroline Cate, a mother of two in Atlanta, Georgia, USA. In 2005, Cate noticed that her children were behaving better when they thought Santa's elves were watching them. To capitalize on this behavior, Cate designed a small elf toy and created a book that explained how the elf was sent from the North Pole to watch over children. The idea caught on and has become a popular Christmas tradition in many homes.