The tradition of the Elf on the Shelf started in the 1970s when a toy company owner named Carol Aebersold was looking for a new way to promote her business. She came up with the idea of an elf that could magically move around a child's home and report back to Santa Claus on their behavior. The Elf on the Shelf quickly became a popular holiday tradition, and it continues to be a beloved part of many families' Christmas celebrations today.