Elf on the shelf is an iconic toy created by Barbara and Carol Aebersold in 2005. The idea came about when the pair wanted to find a way to get their children to behave during the holidays. They decided to create an elf who would watch over them and report their behavior back to Santa Claus. The elf on the shelf became a popular Christmas tradition, with many families adopting it as their own. Today, the toy is still manufactured and sold by various companies.