Every Christmas season, letters to Santa flood in from kids around the world — but in Santa Claus, Indiana, volunteers become Santa’s elves to ensure every child gets a reply.

This small town, according to locals, was initially going to be called "Santa Fee." Its request for city status, however, was denied due to an existing town already named Santa Fe in Indiana. 

As a result, it was named Santa Claus instead. It's the home of a decades-old tradition of responding to letters sent to Santa. 

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Last year, nearly 25,000 letters arrived — and this year, volunteers expect even more.

Santa Claus, Indiana, may be small, but it has a big holiday spirit. The town’s post office has been receiving letters addressed to Santa for nearly a century. 

A vintage child’s letter to Santa Claus displayed in the Santa Claus Museum and Village.

A child’s letter to Santa is preserved at the Santa Claus Museum in Indiana. (Olivianna Calmes/Fox News)

For years, volunteers have answered those letters, ensuring each child receives a personalized response.

The post office is one of the oldest buildings in the town, dating back to 1856. 

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Pat Koch, the town’s "Chief Elf" at the Santa Claus Museum and Village, has been involved in the effort since she was only 12 years old, she told Fox News. 

"When my father came back from the Navy, from World War I, he went to the post office to visit the postmaster in Santa Claus, and found that he was just inundated with mail and letters from children," Koch said.

Chief Elf Pat Koch instructs volunteers how to reply to kid's letters to Santa

Pat Koch or "Chief Elf," at right, shares the ins and outs of how to respond to letters sent to Santa from across the world.  (Olivianna Calmes/Fox News)

Today, the effort is a team effort, with "elves" helping to sort, read and reply to thousands of letters. 

The original post office is still at the heart of this process.

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Letters are answered in the building's backroom, a space where the magic of Santa is kept alive year-round.

"I think it’s absolutely wonderful that children still believe, because of all the social media, TV, movies and all that," said Koch.

A volunteer in a red sweater writes a reply to a child’s letter to Santa Claus, surrounded by stacks of festive stationery and envelopes.

A volunteer at the Santa Claus Museum in Indiana replies to a child’s heartfelt letter to Santa. (Olivianna Calmes/Fox News)

The Santa Claus Museum showcases letters dating back to the 1930s, with some written by children from across the world. 

Many letters are filled with joy — but some reflect deeper, more difficult situations.

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"We do get many sad letters. I can say last week I think it was a child who was mature said, ‘I hope my mom gets drug tested.’ That’s really sad. And all we can say is ‘Santa is hoping your mother gets better,’" Koch said. 

She said answering every letter is important to spread Christmas cheer to kids in all situations.

A festive welcome sign for Santa Claus, Indiana, featuring a Santa statue and a decorative Christmas tree.

A welcome sign in Santa Claus, Indiana, "America’s Christmas Hometown." (Olivianna Calmes)

The elves at the Santa Claus Museum and Village can receive letters to Santa any time of the year at this address: 

Santa Claus 
P.O. Box 1 
Santa Claus, IN 47579

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The town itself features Holiday World and Splashin' Safari (formerly called Santa Claus Land), which is said to be one of the world's first amusement parks. 

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It also features Christmas-themed shops, restaurants, even a grocery store that embraces the festive atmosphere year-round.