As nouns the difference between gremlin and dwarf
is that
gremlin is a mythical creature reputed to be mechanically and mischievously inclined to damage or dismantle machinery while
dwarf is (mythology) any member of a race of beings from (especially scandinavian and other germanic) folklore, usually depicted as having some sort of supernatural powers and being skilled in crafting and metalworking, often depicted as short, and sometimes depicted as clashing with elves.
As an adjective dwarf is
.
As a verb dwarf is
to render (much) smaller, turn into a dwarf (version).