Dwarf Dwarves are a race that appear in some titles of the " Final Fantasy " series . They are usually portrayed as highly skilled engineers , and almost always have a special password . Usually , that password is " Lali - ho ! " or something similar . Appearances . " Final Fantasy " . Mount Duergar is the home of the Dwarves . The Dwarves are a friendly short - statured people , known to be hard workers and very good blacksmiths . One of the Dwarves , Nerrick , after being given Nitro Powder , blows up a rock creating a canal that allows the Warriors of Light to leave the Aldean Sea and reach Melmond . The Dwarves later excavate the cavern where the Earthgift Shrine is located . The Warriors of Light encountered the Dwarves again at Whisperwind Cove , where they bartered for a Star Ruby , among other things . " Final Fantasy III " . The dwarves inhabit the underground caverns of Dwarven Hollows and many say " Lali - ho ! " . When the Warriors of the Light first visits them , they are dismayed by the stealing of one of the Horns of Ice from their sacred shrine by " that rascal Gutsco " . " Final Fantasy IV " . The dwarves live in The Dwarves ' Castle and the tiny city of Tomra in the Underworld . The dwarves of the castle say " Lali - ho " , while the dwarves of Tomra say " Hi - ho " . They are ruled by a king named Giott , and his daughter Luca , and are protectors of one of the Dark Crystals . They use tanks as their main weapon . Female dwarves act as nurses and they heal Cid Pollendina after he is wounded . Cecil Harvey , Kain Highwind , Rosa Joanna Farrell , Yang Fang Leiden , and Cid arrive at the Dwarves ' Castle at about the time Golbez and the Red Wings are attempting to steal their Crystal . Cecil and his friends offer their help , and Giott accepts . Giott announces that the Crystal is still safe , but Yang senses something strange in the crystal room . Luca ' s dolls , the Calcabrina , have become possessed by Golbez . Giott lets the party into the back to defeat them . They succeed , but then Golbez appears , and after a long battle , he steals the Crystal . Giott divulges the last Crystal is in the Sealed Cave which Golbez cannot open , saying it is a good time to reclaim the other Crystals in the Tower of Babil . He orders his tanks to create a diversion so that Cecil may enter the tower . Cecil ' s party fails to acquire the other Crystals , and they return to the Dwarves ' Castle . Giott decides it is time to open the Sealed Cave and orders Luca to give Cecil her necklace , which is the key to opening the Sealed Cave . Golbez steals that Crystal too and Giott tells Cecil about the " Lunar Whale " that was alluded to in the Mysidian Legend . The dwarves do not know that Mysidia exists , but Cecil does . The dwarves ' tanks appear in the battle with the Giant of Babil , likely one of the few times in the world ' s history that they are seen above - ground . " Final Fantasy IV - Interlude - " . A few dwarves appear on board the " Falcon " acting as vendors for the party . Once the Tower of Babil glows for a few moments , King Giott sends the dwarves ' tanks at the base of the tower and surrounds it . The dwarves play a major role in Rydia ' s Tale , but a minor role otherwise . Luca is a member of the playable party , and one of the few new party members that cannot be missed for recruitment in the final tale . The Dwarven Castle is attacked by the Red Wings and their Crystal stolen , so Rydia and Luca go to Tomra and then the Sealed Cave to retrieve the final Crystal . In Edge ' s Tale , Zangetsu disguises himself as a dwarf while observing the state of their people . He often fails to get their mannerisms correct and has to make excuses to keep his cover . " Final Fantasy V " . The dwarves appear in the Great Sea Trench where they manage a small town , and are attempting to dig a long tunnel . A dwarf named Rallybo feels something directly above him though he is actually alluding to the Phantom Village . They claim to be part of a great nation even though five or so are actually seen . In the iOS version , meeting with the dwarves earns the player the achievement " Lali - ho ! " . " Final Fantasy IX " . The dwarves live in Conde Petie and speak with an exaggerated Scottish accent . Their password is " Rally - ho ! " . They hold the institution of marriage to be sacred , and only allow those who have married to travel to the Sanctuary . This forces Zidane and Dagger , and Vivi and Quina — if the player chooses — to have a wedding . The dwarves trade with " aware " black mages who inhabit a village in the forest to the south . Unlike other depictions of dwarves , the dwarves of Conde Petie consider forests and sunlight to be sacred , and live above ground . The dwarves of " Final Fantasy IX " also have green skin and physically resemble goblins rather than the typical appearance used . " Final Fantasy Adventure " . The dwarves live in Dwarf Cave . The player meets a dwarf named Watts in the Old Mine , and he joins up with Sumo temporarily . Watts is a recurring character in the " Mana " series , appearing in other titles such as " Secret of Mana " ( as a blacksmith to upgrade the party ' s weapons ) and in " Legend of Mana " ( as an NPC during a couple of quests ) . " Final Fantasy Dimensions " . The dwarves make their home in the town of Aulë . The Warriors of Darkness come to Aulë in the hopes of recruiting the dwarves in the fight against the Avalon Empire . They are unable to recruit the dwarves directly , but they are able to get information about the mysterious dark knight , and can have the dwarves forge weapons for them if they bring the ore . The dwarves in the past had an alliance with the kingdom of Falgabard : they aided the knights of Falgabard by crafting powerful weapons and armor in exchange for Falgabard protecting Mt . Gulg , whose lava the dwarves needed to perform their craft . However , they were unable to prevent Falgabard ' s destruction at the hands of Baugauven . Towards the end of the game , a few dwarves are trapped within Castle Falgabard as it is drawn into the Void . Trapped in the World of Misery , the dwarves inside the castle are reduced to utter apathy , until the Warriors of Light and Darkness defeat Misery and restore the dwarves to their proper states . After the game is completed , a single dwarf can be found in the Gladiators ' Hall . There , he will use pieces of Adamantite the player has won from the Adamantoise to create Adamant equipment for the player to use .