Dwarves are magical beings endowed with magical power, these human like creatures often help and advise other magical beings with their knowledge of mythical beings and other magical entities.
They have an air of mystery about them and can sometimes seem distrustful and may act in deceitful ways and be openly hostile; however when it comes down to it Dwarfs are beings of Good, they just have their own ways of approaching situations and will always be glad to help out other beings if ultimately it benefits them.
Dwarfs often possess the power to break or lift certain curses and protect those beings affected by a curse, like in the tale "Snow White and the Seven Dwarfs". They often dwell in mountainous areas in the Enchanted Realm and are known to bestow gifts upon those who they consider allies.
Dwarfs were seen in Happily Ever After and Oh My Goddess! Part 1, both times offering guardianship over Charmed One Paige Matthews after curses were placed on her, the first time was containing her body, preserving it and protecting her after eating a poisoned apple and then breaking Meta's spell that turned her to stone. Another Dwarf appeared in Gone With The Witches.
One of the main dwarfs arrives at the manor to try his hand at pulling Excalibur from the stone. He kept getting pushed out of line and was ultimately never seen pulling out the sword. After Piper removed Excalibur, the dwarf offers any services he can (including building castles and making suits of armor) and then quickly zips out of the manor. Later, the dwarf is captured by the Head Executioner Demon and reveals to the Dark Knight that Piper Halliwell has control over Excalibur now. And before Mordaunt discovers who is training her he attacks the demon and zips out of Mordaunt's lair.