In mythology, Dwarves are much like humans, but generally prefer to live underground or in mountainous areas. Some literature and games ascribe to dwarves the ability to see in the dark and other adaptations for living underground. Here they have accumulated treasures of gold, silver, and precious stones, and pass their time in fabricating costly weapons and armour. They are famed miners and smiths although, like humans, they specialise in any number of trades. Generally shorter than humans, they are on average stockier and hairier, usually sporting full beards. Though slow runners and poor riders, dwarves are said to be excellent warriors and defenders of their strongholds. Some myths and games also ascribe to dwarves the ability to forge magical items. In Norse mythology, for instance, dwarvish smiths created some of the greatest and most powerful items of power, including the magic chain that bound the wolf, Fenris. (Mythical Creatures Guide)
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