Dwarves are a special unit in Stronghold Legends, and only available to players who are currently playing as the Ice faction.
They are recuited from The Ice Tower, costing just 80 gold and 5 honour. You can find out ways to generate Honour in the game here.
Though small and not as intimidating as units such as the Frost Giant, the Dwarf is actually quite a useful unit to have in your army, especially considering how cheap they are, which allows you to mass produce them.
Dwarves are slow moving, but can definitely hold their ground in the fact of an assault. They are armoured against arrows and while this is nowhere near as strong as the Plate Armour used by Swordsmen and Knights, it does provide a basic level of protection against arrows and therefore makes the unit take less damage from them.
Crossbowmen however, do still perform adequately against Dwarves, killing them in 8 shots. The Crossbowman's Leather Armour will protect him against the Dwarf's attack when he initially arrives, but a small number of Dwarves will overwhelm the Crossbowman quite quickly.
Dwarves produce a toxic green cloud when they use their Hammer to attack anything, and this toxic cloud damages any nearby unit in the game - including the Lord - except for your Dwarves. Be warned that it can and will also damage and potentially kill your own troops, unless you keep them away from these toxic clouds.
The more the Dwarves attack in the same area, the brighter the green colour will become obscuring more of the map, and the more toxic it will become as a result. This will eventually fade away after a while, but will remain toxic for as long as it is visible.
Unlike most units, Dwarves also have the ability to directly attack castle walls using their Hammers. This allows them to tear down castle walls slowly, in a similar but slower manner to how it is done by Polar Bears. The more Dwarves you have attacking a wall, the faster it will be destroyed.
Any units who were stationed on top of the wall will gradually slide down to ground level as and when the wall around them is torn down, unless these units are moved to a different place on the wall. Once the units reach ground level, they will be impacted by the noxious green cloud caused by the Dwarves attacking the wall, and if not killed by the Dwarves, probably very quickly killed by that instead.
Dwarves are slow moving units so as you would expect do not fare well from aerial attack, with no way to defend themselves. They can take in a lot of damage from fire and by being frozen. However they can themselves cause a lot of damage when they actually do arrive at their intended destination, if they last that long. Their attack strength is fairly medium, they aren't as strong as Knights and other armoured units, but aren't as weak as unarmoured units such as White Wolves.
Dwarves can easily pick off weaker units such as Archers and Men-at-Arms. They are also surprisingly well matched in defeating a Saxon Warrior, although this may in part be down to the noxious cloud they produce. Two Dwarves can kill a single Werewolf, while even a small group will severely struggle with a Polar Bear, due to its armour. Astonishingly, a group of even just 4 Dwarves can easily kill a Frost Giant. Not even by their Hammer attack, simply because of the noxious cloud which depletes the health of the Frost Giant.
Tip: Dwarves are surprisingly good at attacking an enemy Lord, but only really in a group. As well as attacking and killing a Lord, they can also manage to kill the Bodygards which he summons to try and protect himself.
The Lord will manage to defeat several of the Dwarves due to the fact their armour is not as strong, however the noxious cloud produced by the Dwarves will greatly damage him over time, as will their persistent attack on him. These are great units to send in to an enemy castle to overwhelm defenders, create breaches in walls, and cause general chaos to an enemy.