1- Any malformation in a dream indicates a part of our personality which has not been integrated or has been left undeveloped. In a dream a dwarf denotes a part of ourselves which has been left damaged by painful childhood trauma or a lack of emotional nourishment.
2- A dwarf may signify a small part of ourselves that needs consideration. This may be a stunted aspect of our personality which does not become apparent until we are prepared to take responsibility for it.
3- A dwarf symbolises the Unconscious and undifferentiated force of nature.
[1]A pan of our personality left undeveloped or not integrated.
For instance we may have musical ability which was suppressed by the need to bnng up children. Also a pan of self malformed by painful childhood experience or lack of emotional nourishment. It may therefore be a link with our unconscious.
[2]