What remained of the belief in elves in German folklore was that they were mischievous pranksters that could cause disease to cattle and people, and bring bad dreams to sleepers. The German word for nightmare, Albtraum, means "elf dream". The archaic form Albdruck means "elf pressure"; it was believed that nightmares are a result of an elf sitting on the dreamer's chest.
Tolkien's elves were enemies of goblins and orcs and had a longstanding quarrel with the dwarves: these motifs also often reappear in Tolkien-inspired works. In gaming, and to some extent fantasy, elves have a great depth of knowledge (especially regarding magic) due to a racial inclination as well as their extreme age. There are also "dark elves" popularized by TSR as drow.
Tolkien's The Lord of the Rings (1954-1958), became astoundingly popular and was much imitated. In the 1960s and afterwards, elves similar to those in Tolkien's novels became staple non-human characters in high fantasy works and in fantasy role-playing games (RPGs).The Discworld novels by Terry Pratchett feature extradimensional creatures called elves, that go back to the old myths of cradle-robbing fairies. The book Lords and Ladies is about an encounter with "the fair folk".Elf-shot was the name use for found neolithic flint arrow-heads, imagined as created and used by the elvish folk, and sudden paralysis was sometimes attributed to elf-stroke.Elf, fairy, and other terms for nature spirits like pwcca, hobgoblin, Robin Goodfellow, the Scots brownie, and so forth are no longer clearly distinguished in popular English folklore, nor are similar terms in other European languages.The influence of Shakespeare and Michael Drayton made the use of elf and fairy for very small beings the norm. In Victorian literature, elves usually appeared in illustrations as tiny men and women with pointed ears and stocking caps. There were exceptions, such as the full-sized elves who appear in Lord Dunsany's The King of Elfland's Daughter.German folklore held that elves had a particular fondness for children and would appear to those about to die, rather like the Irish banshee. This aspect of the legend was immortalised by Goethe in his poem Der Erlknig, later set to music by Schubert.In USA, Canada, and the United Kingdom, the modern children's folklore of Santa Claus typically includes diminutive, green-clad elves as Santa's assistants. They wrap Christmas gifts and make toys in a workshop located in the Arctic. In this portrayal, elves slightly resemble nimble and delicate versions of the dwarfs of Norse mythology. However, the elf legends are in fact, even older than Saint Nicholas, the bishop on whom Santa Claus was originally based.