A new and distinct Hosta plant named ‘;Blue Elf’; with rounded, glaucous, blue-green leaves having a near white underside. The blue-green leaf coloration remains until near the end of the growing season. The flowers are held on tightly congested scapes just above the foliage. ‘;Blue Elf’; has excellent dwarf characteristics and is useful in the miniature garden, as edging or front of the landscape border, in containers, as a specimen or en masse.