This is generally a fortunate dream to have. If the dwarf appears healthy and pleasant, it suggests your own growth — mentally and physically — will never be stunted. You can expect good health and a constitution that supports you in pursuing many rewarding endeavors.
Seeing people you care about appear as dwarfs points to their continued wellbeing and suggests many joyful moments shared together.
However, if the dwarfs in your dream are unsettling or grotesque in appearance, be prepared for a period of distress and hardship.