The Nordic word from which 'elf' stems, the Alfar were divided into two groups:

The Swartalfar, or 'Dark Elves', were said to live underground where they made magical weapons. They are described as having been born from the maggots that fed off the giant Ymir's body, and are sometimes referred to as being deformed or hideous. They share a significant amount of similarities with some of the dwarves (the 'Duergar') of Scandinavian mythology, which can make the distinction between the two (if indeed there is one) difficult to discern.

The Liosalfar, or 'Light Elves', were said to live in Alfheim, one of the three worlds located on the highest tier of the Norse universe. They are described as being luminous, beautiful, and brighter than the sun, and some claim that, being the antithesis of the Dark Elves, they are kindly disposed towards mankind. They bear, through these descriptors, superficial similarities to the some of the Sidhe of Celtic mythology.