In Appendix A of The Lord of the Rings, it has been noted that they eventually went to the Dwarves' ancestral home of Khazad-dûm. Thorin III helped rebuild Dale and the Lonely Mountain, and his realm became a close ally of the new King Elessar. Under his rule, the Dwarves prospered well into the Fourth Age.
Within 100 years after Sauron's demise, the Dwarves had helped restore Middle-earth, forged a new kingdom, restored lost friendships with Men and even returned to the Mines of Moria. However, it was still the Age of Men, and so slowly they began to fade away like the Elves before them.
The Dwarves fled Khazad-dûm, which from then on was called Moria, which means "Black pit". Most of Durin's Folk left for the Grey Mountains in the North, while some followed the new king, Thráin I, who went to Erebor.
From TA 2989 to TA 2994, the re-colonization of Moria was an attempted expedition led by Balin to re-take the ancient Dwarven Kingdom of Khazad-dûm. An initial effort was successful in reclaiming some of Moria from the Orcs.
Human souls depart the physical universe entirely and go to Eru. Dwarven souls might be held in Mandos awaiting the end times. The eschatology of Middle-earth is very vague, so we can only speak to the beliefs of different groups.
Though Gimli has no children, he is not the last Dwarf of Middle-earth. After the fall of Sauron, his people continued to thrive in the Lonely Mountain. Gimli made his home in Rohan, in the Glittering Caves of Aglarond, and many of his kinsfolk came with him.
Gimli didn't know about Moria's fate because there had been no communication between Erebor and Moria for 25 years, and the Dwarves were hopeful and did not want to accept failure until there was certain news.
So when Gandalf confronts the Balrog on the Bridge of Moria he faces a real and deadly danger. But he realizes the Quest is in peril and so sacrifices himself to ensure their escape; he falls from the bridge and fights the Balrog, but is himself killed. Yet he returns and is enhanced in power and clothed in white.
Simply put, he was the only one available. There were only two dwarves at the council of Elrond, Gimli and his father Gloin. The Dwarves were fighting Sauron's forces constantly in their own campaign and couldn't spare many. Gloin was also much older now, it was absolutely his son's turn to go on a big journey.
Before the War of the Ring, the Dwarves took part in the Battle of Five Armies, an event covered in the third and final installment of Peter Jackson's The Hobbit trilogy. While this war ended in victory for the Dwarves, far too many lives were lost, including that of Thorin Oakenshield.
Early life. Born in TA 2879, Gimli was the son of Glóin and a nephew of Óin, both former companions of Bilbo Baggins. He was a descendant of Durin the Deathless, father of the first house of the Dwarven people. Gimli was descended from, but was not a member of the royal line.
Since their will was not bound to Sauron now, it is more likely that they ran away in terror and scattered across Middle-earth. After Sauron's defeat, Aragorn and his army killed the remaining Orcs in Mordor.
The Dwarves dug too greedily and too deep for mithril, and disturbed a demon of great power: a Balrog, which destroyed their kingdom. By the end of the Third Age, Moria had long been abandoned by the Dwarves, and was a place of evil repute.
The fact that she was an elf means that there is no way that she could be dying for no reason normally. Elrond is telling Aragorn that because she has chosen him, she is now slowly dying the death of any mortal, as they live and grow older.
What happened to Gandalf after defeating the Balrog?
Gandalf was himself utterly spent in the battle, and after the fall of the Balrog, he too collapsed into darkness and died. For nineteen days Gandalf's body lay on the mountain, until his spirit was sent back to complete his mission in Middle-earth, and thus he returned to life as Gandalf the White.
The Balrog killed Durin VI, the Dwarf-King of Khazad-dûm, whereafter it was called Durin's Bane by the Dwarves. Avarice, principally for mithril, drove the dwarves to go too deep and awaken the Balrog.
It told how Balin discovered Durin's Axe, and established a small colony, but it was overrun by orcs and Balin was killed by an orc archer in Dimrill Dale. Thus he died in the same place as his father, having been self-proclaimed Lord of Moria for less than five years.
In TA 2941, Gimli was prevented from traveling with his father on the Quest of Erebor because Thorin and Company thought he was too young, though Gimli, being in his sixties, considered himself ripe for adventure and was disappointed to be left behind.
When Morgoth's defeat was inevitable, the Balrog fled into the tunnels deep within Middle-earth. They were created by the infamous Nameless Things, and they offered a surefire place to stay hidden. And it did, until the Dwarves delved too deep during the Third Age, disturbing its slumber.
According to one theory (via Stack Exchange), Gimli did not know about the fall of Moria in The Lord of the Rings: The Fellowship of the Ring movie due, effectively, to poor communication.
After losing Erebor, the Dwarves became a nomadic people, residing in human settlements. After their losses in the Battle of Moria, with both the king and the prince gone, Thorin led his people into the Blue Mountains, where they ultimately established a new colony.
Much like the Dwarves, The Lord of the Rings mentions Hobbits slowly faded away over time as Middle-earth became the real-life Earth of today. However, Tolkien also claimed that Men later forced Hobbits into hiding and even hunted them for sport.
What happened to the Dwarf armies in Lord of the Rings?
Of course, not all of The Hobbit dwarves are alive by the end — Thorin Oakenshield, Fíli and Kíli all perish during the climactic Battle of Five Armies. The Hobbit dwarves Óin, Balin and Ori all die prior to The Lord of the Rings, when a colony is sent from Erebor to reclaim the Mines of Moria.
