How are Kender, Gnomes, and Dwarves related?
While there is some debate over their actual origin, two of the three races were created when the Graystone passed over Krynn thousands of years prior to the Cataclysm. One explanation is that gnomes were the first race and that the curious ones became kender and the greedy ones became dwarves. There are other theories on their relationship as well, including an erroneous theory that kender descended from elves. This theory has since been disproved.
This has been a controversial issue in the past, but current continuity trends tend to support the original canon. Namely: • Gnomes are derived from humans who were cursed by Reorx, • Dwarves and kender are derived from gnomes warped by the Graygem, • Gully Dwarves are derived from dwarf/gnome minglings, and • Dark Dwarves are derived from dwarf/human minglings. The only alternative theory which still seems to have any support among fans is the idea that kender are derived from elves warped by the Graygem. This is supported by the fact that Balif is described as both a Silvanesti Elf General and the founder of the kender nation of Balifor. This is a major motif in the writings of Paul Thompson and Tonya Cook.