IMDb - Willow (1988) - Brownies & Goblins

Willow (1988) is a fantasy film directed by Ron Howard and produced by George Lucas, featuring a variety of goblin-like creatures. The story follows Willow Ufgood (Warwick Davis), a Nelwyn (a race of diminutive, peaceful farmers) who must protect a special baby from the evil Queen Bavmorda. While not called goblins directly, the Nelwyn share many characteristics with folklore's friendly house-goblin/brownie tradition. The film also features the character of Madmartigan (Val Kilmer), a rogue warrior who battles monstrous trolls and goblin-like creatures. The film's most famous goblin-like creatures include the two-headed Eborsisk dragon (a nod to film critics Ebert and Siskel) and the trolls of the Daikini forest. Willow established many fantasy creature tropes that would influence later depictions of goblins in cinema, particularly in showing that small, unassuming beings can be the heroes of their own stories.