Dwarves play an important role in Scandinavian mythology. They were created when the earth was formed out of Ymir’s body, they are the maggots which ate his flesh. Dwarves, or dwarfs, are also called dark elves. The following is an excerpt from Volúspa ("The Prophecy of the Seeress") called Dvergatal ("The Catalogue of Dwarfs"):

"Then gathered together the gods for counsel,
the holy hosts, and held converse:
who the deep-dwelling dwarfs was to make
of Brimir’s blood and Bláin’s bones.

Mótsognir rose, mightiest ruler
of the kin of dwarfs, but Durin next;
molded many manlike bodies
the dwarfs under earth, as Durin bade them.

Nýi and Nithi, Northri and Suthri,
Austri and Vestri, Althjóf, Dvalin,
Nár and Náin, Níping, Dáin,
Bifur, Bofur, Bombur, Nóri,
Án and Onar, Ái, Mjóthvitnir.

Veig and Gandálf, Vindálf, Thráin,
Thekk and Thorin, Thrór, Vit, and Lit,
Nár and Regin, Nýráth and Ráthsvith;
now is reckoned the roster of dwarfs.

Fíli, Kíli, Fundin, Náli,
Heptifíli, Hanar, Svíur,
Frár, Hornbori, Fræg and Lóni,
Aurvang, Jari, Eikinskjaldi.

The dwarfs I tell now in Dvalin’s host,
down to Lofar- for listening wights-
they who hied them from halls of stone
over sedgy shores to sandy planes.

There was Draupnir and Dólgthrasir, Hár and Haugspori, Hlévang, Glói,
Skirvir, Virvir, Skafith, Ái,
Álf and Yngvi, Eikinskjaldi,

Fjalar and Frosti, Finn and Ginnar.
Will ever be known, while earth doth last,
the line of dwarfs to Lofar down."

Tolkien fans will immediately recognize some of these names, though not necessarily as dwarves. Middle Earth is full of influences from Scandinavian mythology, particularly in names.

Dwarves of Note:

Austri = "East" One of four dwarves who held up Ymir’s skull to make the sky.
Durin = With Dvalin, he forged the sword Tyrfing for Odin's grandson, King Svaverlame.
Dvalin = See Durin.
Fjalar = One of the two dwarves who killed Kvasir.
Galar = see Fjalar.
Northri = "North" See Austri.
Suthri = "South" See Austri.
Vestri = "West" See Austri.