As a child, Carol Aebersold was given an elf doll named Frisbee. She began a ritual in 1974 where she placed the doll on a shelf. Aebersold told her children it monitored their behavior and reported to Santa whether they were naughty or nice.

Aebersold and her daughter adapted this into a bestselling book and craft kit, "The Elf on the Shelf: A Christmas Tradition." The quaint practice was picked up by families worldwide.

The book put forth rules, such as the elf mustn't be touched or it will lose its magic. They also noted he could appear anywhere in the house, generating some whimsical presentation ideas.  

Pose the doll with various artistic implements and a drawing surface. This gives the impression the elf is creating a landscape or self-portrait.

The elf can be made to look as if it's preparing a feast of gourmet candy. Just be sure to avoid any fire hazards.

Set up a playful tableau where the doll is camping out in the wilderness.

With any common tabletop games that may be around the house or bought in a secondhand shop, the elf can participate in family fun.

Oh, that elven office prankster. Make a photocopy of the doll demonstrating it can make merry with its white-collar co-workers.

Use toy cars and/or truck in states of disassembly to portray the doll as a petrol head who's at home underneath a hood.

The elf can help instill a spirit of generosity and goodwill that is supposed to be the reason for the season.

Elf on the Shelf is a useful teaching tool for children, reminding them it matters how they behave when no one is watching.