An elf making its way into your dream is pure magic. It shows you there is a magical and mystical element to yourself shining through. Being aware of this can help you enable it to shine more. We all have an inner child, a liberated, free, and fun-loving innocent self. Innocence is the key here.
When an elf appears, take note of the environment and surroundings, because this will show you the message that wishes to come through. It is significant that you pay attention to the context and physical environments. You can also benefit from remembering the gender of the elf; a female elf may be suggesting you are in tune with your inner femininity, whereas a male elf will suggest you’re in tune with your inner masculinity.