My memory is a bit vague so I won't get my hopes up. I remember a movie from the 80's about some short creature that acted like a person but, came from a world of dirt underground. He befriends a boy and I think takes him to his underground city. I seem to remember the two at a restaurant there getting served bricks of dirt with earthworms crawling in them to the boys disgust. If this is a movie and not a dream I had long ago, I'd appreciate any help I can get.

A Gnome Named Gnorm, maybe? (IMDB page)

You know what I think you are right, I guess I was wrong thinking a boy was involved. Good job finding which one it was with my crappy description and thanks, it was irritating me not knowing which movie this one. The title really rings a bell also, I hope I can find a copy of it somewhere and see if I can still appreciate it after all these years.