Chaos Dwarfs are something of a mystery in the Old World. Before even the race of men had developed, a small group split off from the main body of Dwarfs in the World's Edge Mountains and headed North and East. They set up their home in the Plain of Zharr, and fashioned a great industrial base, based around the smelting furnaces of Zharr Naggrund, where they worship Hashut, the father of darkness.

However, this place was very close to the Chaos Wasteland, and unlike other races, who would have been destroyed by the power of Chaos, the Dwarfs were warped by this power and became known as the Chaos Dwarf. They became mighty sorcerors, and blended magic with their technology to build huge engines of war. From Zharr Naggrund, the Chaos Dwarfs send out raiding parties to capture slaves, mainly greenskins, to work at their mines and furnaces. In fact, the slaves outnumber the Chaos Dwarfs by over 1000 to 1!

In battle, Chaos Dwarf armies are usually based around a solid core of Chaos Dwarf infantry, who are slow, but powerful warriors. The more mobile elements of the army are usually Hobgoblin slaves, somtimes mounted on wolves. The army is supported by Chaos Dwarfs carrying deadly blunderbusses, and war machines such a s the Earthshaker artillery. Like Dwarfs, Chaos Dwarf characters are also very powerful, especially when mounted on deadly monsters like the Great Taurus and Lammasu.