The Great Land of Small (1986)

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Two children, Jenny and David, meet a leprecaun like creature called Fritz in the woods, however his gold dust is being stolen by a wicked hunter. Only Mimmick the Indian knows that the creature is in our world. As the hunter becomes mad with power, he attempts to capture Fritz and the children. With Mimmicks help, they escape to the Land of Small, a mystical, magical land.