Might and Magic Wiki

A slow but tough fighter, the dwarf is the second tier creature of the Forest faction in Heroes of Might and Magic: A Strategic Quest.

The dwarf has the best hit points, damage and attack from all the second level creatures. The only drawback is the slow speed, which limits what a good dwarf can do. Their Magic Resistance is an unique ability with that grants dwarves a 25% chance to be unaffected by enemy spells, making them an even tougher creature. Best used as a defender for elves and druids, the dwarf is the only Forest creature that has slow speed. It is reasonable to leave the dwarves out of the final army for that reason (the hero will move further on the adventure map), especially since they are good at defending castles.

Of course, some maps have dwellings that provide free dwarves for visiting heroes.

Heroes of Might and Magic I creatures
Farm (Knight) units Peasant - Archer - Pikeman - Swordsman - Cavalry - Paladin
Plains (Barbarian) units Goblin - Orc - Wolf - Ogre - Troll - Cyclops
Forest (Sorceress) units Sprite - Dwarf - Elf - Druid - Unicorn - Phoenix
Mountain (Warlock) units Centaur - Gargoyle - Griffin - Minotaur - Hydra - Dragon
Neutral creatures Rogue - Nomad - Ghost - Genie