Dwarves

Dwarfs are small humanoid creatures that live in the magical realm issued from Germanic mythology. They first appear as a cameo in "Nobody's Fu" and make another short appearance in "Magic Enemy #1" (both in Season 2), but never take on a large role in the series.

Physical Appearance
Dwarfs, like their name implies, are very short creatures. In general, they do not stand taller than the waist of an average teenager. They have a greyish skin color and pointed ears. They usually wear tunics (for males) and robes (for females), metal or leather arm bracers, belts, fur boots, and sometimes pauldrons. Dwarfs always wear a metal horned helmet on their heads.

Life in the Magical World
Because Dwarfs are seldom seen in the series, their magical powers are unknown. They are usually associated with mining, smithing and crafting in Norse mythology, which is most probably the same case for the series. They seem to get along well with other magical creatures.

Trivia

 * In "Nobody's Fu", a Dwarf was one of the four judges for Fu Dog's magical guardian permit exam;
 * In modern popular culture, the most famous Dwarf is Gimli from the "Lord of the Rings" trilogy.