This topic should not have been moved from the Books Forum. The answer to the question is to be found in The Silmarilion.
The only war fought between Elves and Dwarves resulted in victory for the Elves, but at great cost.
Thingol employed dwarves to set the Silmaril that Beren cut from Morgoth's crown in a necklace. They took the Silmaril, killed Thingol and fought their way out of Doriath but were completely destroyed in an ambush by Green Elves on their way home.
With the death of Thingol, Melian left Middle-earth. Doriath became vulnerable and was destroyed by Feanor's sons.
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