Elf on the Shelf was created by a retired teacher named Carol Aebersold and her daughter Chanda Bell. The idea behind the Elf on the Shelf came from a family tradition of placing a special elf doll in different places around their house each night during the Christmas season to remind their children to behave. Aebersold and Bell decided to turn this tradition into a holiday-themed toy and created the Elf on the Shelf, which is now a popular part of many families' Christmas traditions.