In fairy tales (such as 'Snowhite and the Seven Dwarfs') they are usually portrayed as short, stocky creatures with long beards. They can be found working in mines, delving minerals and metals. Dwarves are exceptionally skillful with their hands and make the most beautiful (and often magical) objects, which surpasses man-made objects by far.
In Norse mythology, the two famous dwarfs Brok and Sindri made many magical objects for the gods, amongst which Thor's hammer Mjollnir and Odin's magical ring Draupnir.