Dwarfs think and act in a manner that is far different than any other people of the Warhammer world. Some of the most important, most highly valued things in Dwarf society are:

• Honor: Dwarfs have a rigid sense of honor, centered around a bond of promise, or an Oath. If a dwarf makes an agreement, he will honor it, even if there is a high personal cost to do so. He will also honor the promise of an ancestor. Dwarfs, (or any outsiders), who fail to honor an oath are held in the lowest esteem.
• Beards: Dwarfs value old things. They especially value old Dwarfs. The length and fullness of a Dwarfs beard indicates how old he is. When in a difficult situation, Dwarfs frequently will look to the Dwarf with the longest beard for leadership.
• Gold: Hoarding treasure is important in Dwarf society. Treasure is gained throughout the course of a Dwarfs life, and then divided up amongst the Dwarfs descendents. Treasure is not only wealth to a Dwarf, but also a link to the past. This is not to say that a Dwarf doesn't value gold or other riches for the sake of being wealthy...they do that too. No Dwarf feels truly secure about their financial status unless their treasure hoard is large enough to make a comfortable seat.
• Beer: Beer is extremely important to Dwarfs. It is so important that one of the most legendary Dwarfs, Josef Bugman, became so enraged when Greenskins destroyed his brewery that he devoted his life to battling the Goblins and Orcs.
• Craftsmanship: Dwarfs value the quality of their work highly. No Dwarf would ever allow himself to produce something of inferior quality. In fact, it is nearly impossible to hurry a Dwarf craftsman.

At the same time some things are shunned by Dwarf society for a variety of reasons:

• Elves: Elves are seen as a dishonorable race of backstabbers. This largely relates back to the War of Vengeance.
• Magic: Magic is finicky. It is too inconsistent for Dwarfs, and is not to be trusted. Dwarfs do not subscribe to magic like that used by Elves or the Colleges of Magic found in the Empire, but they consider powerful magical runes to be acceptable.
• Oathbreakers: Broken oaths must be accounted for. If someone breaks a promise to a Dwarf, whether the offender be another Dwarf or not, it is noted in the Dammaz Kron (the book of grudges.) Anything noted in the book of grudges remains there until a Dwarf can garner proper recompense from the oathbreaker.

Dwarfs have memories that far surpass the ephemeral memories of men. A dwarf will remember even the most trivial minutiae from throughout his life. Perhaps as a consequence of their great memories Dwarfs have a long history the veracity of which is rarely doubted in Dwarf society. A grievance committed against Dwarfs four thousand years ago is just as relevant as a grievance committed against Dwarfs last year, unless it has already been accounted for in the book of grudges.

Dwarf history begins with a period known as the Time of the Ancestor Gods. No written record of this period of history (over 7000 years ago) remains, but few dwarfs doubt the truth behind the legends. This is a period of Dwarf history during which their Gods lived amongst them. The Dwarfs are believed to be descendants of the Ancestor Gods, specifically from the gods Grungni and Valaya. The Dwarf Gods gave the Dwarfs a great deal of instruction during the Time of the Ancestor Gods, including stone and metal working, armor crafting, the arts of war, and how to carve suitable homes for themselves into the mountains.

The Time of the Ancestor Gods came to a close with the coming of Chaos. Dwarf legend maintains that Grimnir, the Ancestor God that taught the Dwarfs the art of war, battled the Chaos Gods, and closed the Chaos gate after disappearing into it. Without Grimnir's sacrifice, the world would have been consumed by Chaos. The other Ancestor Gods disappeared shortly after Grimnir's battle with the Chaos Gods.

Shortly before the disappearance of Grimnir and the other Ancestor Gods, the Dwarfs had their first encounters with Elves, and their relationship began on good terms. The High Elves and Dwarfs traded for many centuries and even combined forces to help drive the armies of Chaos from the Old World. The trade made the Dwarfs quite wealthy, though both societies benefited from the trade. The relationship between Elves and Dwarfs is featured in some of the older artwork throughout the Dwarf realm. The great "High Kings Hall," in Karaz-A-Karak, features a ceiling with a celestial map done in jewels that is of Elven craftsmanship.

In the year -2005 IY (Imperial Years, the imperial calendar began when Sigmar Heldenhammer was crowned Emperor) Dwarf traders were ambushed and murdered by Elves. The Dwarfs were furious, and unaware that the perpetrators were actually Dark Elves, an offshoot of Elves that split from the High Elves during a civil war, and are led by the former Ambassador to the Dwarfs, Malekith. In an attempt to avoid war, High King Gotrek Starbreaker dispatched an emissary to the High Elves, to demand retribution for their losses. The emissary was shaved of his beard, an act considered highly insulting by the Dwarfs. War ensued. The Elves referred to the war as the "War of the Beard," the Dwarfs called it the "War of Vengeance."

The War of Vengeance lasted for many years, and was followed by only a few years of peace before the period known as the "Time of Woes" began. The Time of Woes was around -1500 IY, and it featured cataclysmic earthquakes, and streams of lava flowing into the underground realms of the Dwarfs. Many of their structures were damaged severely, and many Dwarfs died. The precise details of the events that comprised the Time of Woes are difficult to ascertain, because so many of the records of the period were lost or damaged.

The Time of Woes marked the beginning of another long war-filled period in Dwarf History. The period is known as the time of the Goblin Wars, though the Dwarfs fought many types of evil creatures during this period, not exclusively goblins. The Dwarfs lost many of their wealthy eastern strongholds during the first few centuries of the Goblin Wars. Some of the losses included: Karak Ungor, Karak Varn, the mines of Ekrund, and Mount Silverspear. The Dwarfs abandoned the last of their smaller eastern settlements in -1362 IY.

In the year -1250 IY, the volcano Thunder Mountain erupted, and Orcs and Goblins were driven Northwards where they attacked the Southern holdings of the Dwarfs. King Morgrim Blackbeard leads the Dwarf forces to oppose them, but achieves only minimal gains before being called back to successfully defend Karaz-A-Karak.

The Dwarfs would battle the Orcs and Goblins for many more centuries. In -380 IY, Urgok Beardburner led the Orcs in an attack on Karaz-A-Karak, but the city was successfully defended, despite the capture of the Dwarf king. The Dwarves have been at war with Orcs, Goblins, Skaven, Chaos, and other foul creatures for over two thousand years since then, nearly perpetually.

Thorgrim Grudgebearer is the current High King of the Dwarfs. He is still vigilantly defending the realms of the Dwarfs from many different enemies. He always carries with him, the Dammaz Kron, the Great Book of Grudges. Dwarfs are eager to follow him into battle to avenge a grudge he has studied in the Great Book of Grudges, even given the Dwarfs thinly stretched resources.

The Dwarfs' realm is an intricate set of underground tunnels that stretch throughout the World's Edge Mountains. The grandest tunnel connecting Dwarf strongholds is known as "the Underway." There are some strongholds that exist outside the World's Edge Mountains, but not as many as there were at the apex of the Dwarf empire. The tunnels in the World's Edge Mountains are symbols of a numerous and strong people now reduced to live in a fraction of their previous holdings. Vile creatures such as Skaven, Giants, or Goblins occupy many of the abandoned tunnels.

There are many important strongholds in the Dwarf empire, but none as important as the capital, Karaz-A-Karak. Karaz-A-Karak is roughly translated to mean "the Pinnacle of the Mountain." The dwarf capital is very well monitored; even a lone traveler has his progress noted well before his arrival at the mammoth gates of Karaz-A-Karak. The great "High Kings Hall" is found in the city of Karaz-A-Karak. The High Kings Hall, is the grandest hall known to any dwarf. There are many unoccupied halls in Karaz-A-Karak, which the Dwarfs dutifully cleanse of intruders and restore if necessary. High King Morgrim Ironbeard shut off Karaz-A-Karak from the world by closing its great doors, after the large earthquake that began the "Time of Woes." To this day, the gates only open to allow through a Dwarf army. Though, small openings in the gate will allow in those who have extremely important business with the Dwarfs of Karaz-A-Karak.

Barak Varr, or "Gate of the Sea," shows no signs of being a settlement from land. It is so well disguised that ships sailing to port look as though they are about to crash into a mountainside to those observing from the land. The passengers on the ship though will see the deep cavern carved into the mountainside where the Dwarfs maintain their trading fleet. It is a hospitable stronghold, and one of the few that has remained open to traders of other nations.

Karak Azgal was once named Karak Izril, or "City of Jewels." During a successful attack on the city by Orcs and Skaven, the vast treasures of the city were hidden. The city was renamed Karak Azgal, or "Hoard Peak" to represent the hidden mass of treasure. After the Dwarfs abandoned the city a Dragon, Graug, occupied it. The dragon lorded over tremendous wealth. A young dwarf, Skalf, killed the Dragon and established an outpost within the city ruins with the wealth he acquired. Many Dwarfs use that outpost today, as a base for further excursions into a treacherous part of former Dwarf holdings.