Wikipedia
Krasnoludek (or krasnal) is a Polish mythological type of gnome / dwarf, common in many Polish and translated folk tales (for example, Brothers Grimm Snow White and the Seven Dwarfs is translated into Polish language as Królewna Śnieżka i siedmiu krasnoludków). They resemble small humans and wear pointy red hats. Due to the popularization of fantasy literature, they are now differentiated from both gnomes (Polish: gnom) and dwarfs (Polish: krasnolud), both of which are used in fantasy literature context, while the word krasnoludek still remains mostly the domain of older folk tales. The word krasnal ogrodowy is also used to describe garden dwarfs / gnomes.
Krasnoludek may also be used to insult Swedish taxi drivers in which case it substitutes the Swedish word "tomte".
The word krasnoludek comes from the old Polish krasny, kraśny ('red, colourful', also 'nice-looking' or 'good') and Polish ludek (small person or human-like creature).