Stunted People

The name that the Dwarves used of their own people was Khazâd, and when the Elves of Beleriand first encountered this people they fitted that name to their own patterns of speech as, ultimately, Hadhod (a term probably best known from Hadhodrond or Khazad-dûm). At least, this was the form used in their dealings with the Dwarves, but amongst themselves the Elves adapted their word naug (a small stunted item or person). From this they created the word Naugrim, translated 'Stunted People', probably the most widely recognised of various Elvish terms used for the Dwarves as a people.