The Seven Dwarf Rings have landed in 'The Rings of Power.' What you need to know about the Dwarves of Middle-earth.

Warning: This article contains spoilers for Season 2 of The Lord of the Rings: The Rings of Power.

This week’s episode of The Rings of Power, “Halls of Stone,” begins in the crumbling realm of Khazad-dûm.

As the mountain peaks dissolve into the Ring of Thrór, it’s clear the story is entering a new chapter: the rise (and eventual fall) of the Dwarves, thanks to the newly crafted Seven Dwarf Rings.

It’s a plotline Dwarf fans are excited to see play out — and an episode that many J.R.R. Tolkien loyalists loved.

“I think Episode 5 is the best episode so far of [Season 2], and it might be the best start-to-finish episode of the entire show,” William Smith, host of the Green Lanterns podcast and moderator of the subreddit r/LOTR_on_Prime, told Yahoo Entertainment.

From the powerful Seven Dwarf Rings to the looming shadow of the Balrog demons, here's everything you need to know about the proud, mountain-dwelling Dwarves of Middle-earth and their importance to the plot of The Lord of the Rings: The Rings of Power.

The Seven Dwarf Rings

Forged by Sauron/Annatar and Celebrimbor, the seven rings were made during the division of the Dwarf clans — Durin's Folk, Firebeards, Broadbeams, Ironfists, Stiffbeards, Blacklocks and Stonefoots — with each leader receiving a ring.

While these rings did not turn the Dwarves into wraiths like the Rings of Power did to men, they did amplify their greed and desire for wealth, leading to the accumulation of the Seven Hoards, and kindling evil that ultimately benefited Sauron.

In Episode 5 of The Rings of Power, the Seven Dwarf Rings were designed to fit the aesthetic of the Dwarves. In Tolkien’s books, however, it is not mentioned that the seven were designed or made specifically for the Dwarves.

King Durin III

The first bearer of the mightiest Dwarf Ring, the Ring of Thrór, is King Durin III. He was part of the King of Durin's Folk who ruled Khazad-dûm at the time of Sauron’s attack on Eregion.

During his reign, a rare friendship was struck with the Elves of Eregion. This union leads to the Doors of Durin (more on that soon) — and to the Dwarf army marching in defense of Celebrimbor during Sauron’s eventual assault.

In Episode 5 of The Rings of Power, we see Durin III wielding his new ring to help heal the mountain and bring light back into the underground kingdom.

But this power comes with a price, as the king is almost immediately corrupted by the ring, lifting gold-digging restrictions, enforcing a “ring tribute tax” and growing increasingly possessive of the ring and suspicious of his court.

The Doors of Durin

The Doors of Durin are an iconic symbol, not only of Dwarven craftsmanship and ancient magic, but also of the historical union between the Elves and Dwarves.

In Tolkien’s works, these doors were crafted by Durin I (aka Durin the Deathless), the founder of Khazad-dûm, and are famously inscribed with the phrase "Speak, friend, and enter."

The doors form the western entrance to the Dwarven city and facilitate contact and cooperation with the Elven realm of Hollin, as well as unfettered trade. They will eventually close during the War of the Elves and Sauron after Hollin falls to Sauron's forces.

In “Halls of Stone,” we see Dwarf craftsman Narvi and Celebrimbor joking together and unveiling the Doors of Durin — a moment Smith says was amazing.

“I can’t wait for [the doors] to actually glow in the show!” Smith told Yahoo Entertainment.

Prince Durin IV and Princess Disa

While Durin IV is not heavily featured in Tolkien’s writings — and Disa does not exist at all — the couple are critical for understanding the shifting dynamics within the Dwarven society.

As Prince Durin grapples with both his father’s legacy and the crumbling state of Khazad-dûm, he struggles to balance duty with personal desires — a theme that resonates with the broader conflicts unfolding in Middle-earth.

Princess Disa, who can communicate with the mountains through song, is crucial in helping to repair the relationship between the Dwarves and Elves, as she fosters the couple’s friendship with half-Elf Elrond.

Together, they warn King Durin III — and later, Celebrimbor — about the dangers of using the rings.

“It is a highlight of the episodes to me that Durin IV and Disa continue to be voices of reason with Celebrimbor and with Durin III,” said Smith. “I have grown so attached to these two. I hope they make it through the full five seasons!”

The Balrog or the Watcher in the Water

In Episode 5, Princess Disa purchases a tuning crystal that accidentally rolls into a strange cave near the market.

After Disa uses her mountain-singing abilities to locate the crystal, a terrifying bellow emanates from deep within the cave, making the surface of the water dance forebodingly.

Some fans suspect this could be signs of the Balrog waking from its slumber within the belly of the mountains.

Balrogs are a species of ancient, demonic creatures that shroud themselves in fire, darkness and shadow. They are armed with fiery whips and occasionally long swords. In Middle-earth, only dragons rival their ferocity and capacity for destruction.

However, other fans, like Smith, speculate that the stirring creature could be the Watcher in the Water, a tentacled beast that lurks beneath the western Walls of Moria.

As The Rings of Power continues to weave its intricate tapestry of Middle-earth, the Dwarves and their lore play a crucial role in the unfolding rise of Sauron.

With each episode, the show paints a more vivid depiction of the mountain-dwellers and the epic battle they’re soon to face.

The Lord of the Rings: The Rings of Power is now streaming on Prime Video.