Rudolph and eight of his reindeer are hiding in Spalding shops in the run up to Christmas.
The Spalding BID (Business Improvement District) has funded the initiative to encourage footfall in town.
The competition runs until December 16 with festive themed prizes on offer.
Coun Gary Taylor, portfolio holder for community development, said: “We’re delighted to be supporting this fun initiative which brings together our businesses, residents and visitors in the festive spirit.
“It’s a wonderful opportunity for people of all ages to head into Spalding town centre and show support for as many businesses as they can.
“Choosing to shop locally is essential to keeping our economy, towns and villages vibrant – and it also gives people the chance to discover everything our area has to offer.
“Best of luck to everyone joining the hunt for Santa’s reindeer and for those seeking some fantastic festive bargains!”