To have interaction or to encounter or to see an elf, when you are dreaming, can have symbolic meaning of physical sensation of nervous unease. Elf is reference to some imbalance and disharmony in your life. The elf often serves as a guide of the soul. On the other hand, there can be different explanation, it can be interpreted as symbolism that you need to be more carefree, worry-free, and light-hearted.
Read more about dreaming of Elf in other dream meanings interpretations.