Story Summary via vague memories:
This was a paperback book in a medieval fantasy style setting. I don't remember the publish year, but the book was read in the early 00's. The story did seem more recent as far as writing goes, so I suspect it was written no earlier than the late 80s, though I don't trust my instincts in that aspect. There were four protagonists: two elves, female and male, whom knew each other but didn't seem to be involved; and two hobbit/dwarf like people, male and female, who were in love. They were also described to be more child-like in appearance. I will call the latter dwarves moving forward.
The male elf's preferred weapon was a sword if memory serves, and I distinctly remember the female dwarf using throwing knives and a set of bandoliers. During part of the story they are celebrating a natural event (I want to say something like a solstice), and drank crystal clear water as part of the celebration.
I recall the story focusing on the dwarves lives while they were young at some point in the beginning. The story was also notable because at least one, if not both, of the dwarves died at the end.
I don't remember if it was part of a series. My memory leads me to believe this was a one-off story, but I don't trust my memory in this aspect.
It has been recommended that it might be in the Dragonlance world, since the dwarves sound suspiciously like kender. Unfortunately, I can't say for certain if that's the case. The dwarves definitely didn't seem as how the kender are described to behave, but that could also be failing memory.
Another recommendation was that it might be related to The Halfblood Chronicles but the summaries I can find don't seem to fit. For instance, I don't remember a theme of slavery.
I'm hoping I can find the book/series and re-read them, along with passing them on to my children.
