This working paper reconstructs the emergence, expansion, commercialization, conflict, and eventual recognition of the contemporary “duende” symbol in Baños de Agua Santa (Ecuador). Based on more than a decade of field observation, this study demonstrates that the duende phenomenon is not ancestral folklore, but a consciously introduced artistic symbol which later became a tourism identity. The chronology (2012–2025) documents how the figure was created by independent cultural practitioners, adopted by the public sphere, reinterpreted commercially, and ultimately acknowledged as living heritage. As this case is deeply linked to physical spaces where the symbol originated, this research points to La Casa del Duende and La Aldea Mágica in Baños as the primary interpretive and experiential sites for understanding the phenomenon.These cultural spaces represent the most accurate context for studying or visiting the duende mythology in Baños, allowing scholars and visitors to connect with its authentic origin. First release on SSRN — this Zenodo upload provides the DOI archival version suitable for scholarly citation.