Dwarves

Dwarves (or Khazad or Naugrim) are a race of Middle-earth created by Aule.

Characteristics
As they were not created by Eru, they lack the grace of Elves or Men. They are short and bearded, known as smiths of great skill in mining, masonry and stone and metal-working.

Because they were created when the power of Melkor was strongA strong, they were gifted to be sturdy, strong, tough and resistant, indomitable and persistent, but also stubborn, aggressive, covetous, and quick to take offense. Yet they are also honorable, steadfast companions.

They are brave and skilled with arms. They usually carry axes.

History
They were created by Aule whom they call Mahal. Their first were the Seven Fathers of whom the oldest was Durin. Aule created them from the hearts of the mountains before Iluvatar created the Elves. But since Eru saw that Aule was motivated by love and not malice, he added them to his plan. However he caused them to sleep under the ountain until they appeared after his chosen people. As they were made during dark times, they were made to be sturdy and resistant. In the First Age they were allied with the Elves and fought bravely against Melkor and dragons. However some desired the Silmarils of Feanor and their attept resulted to enmity between the two peoples.

In the Second Age they were given seven Rings of Power by Sauron who proved unable to bend them to his will.

In the Third Age they abandoned Moria because of Durin's Bane and moved to Erebor, but those also were driven out by Smaug. They battled Orcs of Moria who killed their king at the Azanulbizar. Gandalf helped Thorin Oakenshield take back Erebor from Smaug.

The major dwarven strongholds are in the Blue Mountains west of the Shire, and in the Iron Hills in the east of Middle-earth. Despite these, the Dwarves were mostly a wandering people.