Of the races of Arda, Dwarves were the most resistant to corruption and influence of Morgoth and later of Sauron. The seven Rings of Power of the Dwarves did not turn them to evil, but it did amplify their greed and lust for gold. It is said that very few willfully served the side of darkness. The Hobbit refers to these as "wicked dwarves". Of the seven houses. few fought on either side during the Last Alliance of Elves and Men at the end of the Second Age, and none from the House of Durin ever fought on the side of evil. However, in times of war, Dwarves often refused to ally themselves with Elves or Men, choosing to remain neutral or oblivious to the clashes between good and evil. During the early parts of the Third Age, it is known that in some places wicked Dwarves had made alliances with the goblins and Orcs. It is suggested by Tolkien in some of his notes that the Dwarves that turned to wickedness most likely came from the far eastern mansions, and came under the Shadow of Morgoth and finally turned to evil. It is however unclear if these refer to Dwarves beyond the Iron Hills (the most eastern known stronghold of the Dwarves) Because Dwarves were not evil by nature, few ever served the Enemy of their own free will.
In some of Tolkien's earliest writings the Dwarven race as a whole was portrayed as an evil creation of Melkor, but Tolkien's ideas evolved as he continued to write about the Dwarves.
The seven houses of the Khazad