Falmer formerly known as Snow elves are a lost race of Tamriel. It is important to know that the falmer are blind. They appear in the "Elder Scrolls" series.
The falmer were in Skyrim long before the first nord colony, this was confirmed by a book in the Dwemer Museum. They were largely peaceful for a very short period of time until they attacked Saarthal. The raid on the city decimated everybody except Ysgramor and his two boys. This forced him to summon 500 companions, the name originates and forbearers of the Companions in Whiterun. They vow to drive the falmer out of Skyrim.
Two books mention the conflict between the nede and falmer was related to the chronic population increase of the nords. The falmer began struggling over territory. Another possibility is the falmers' attachment to a powerful atrtifact uncovered by the nords to keep power buried. The Thalmor believed the Eye of Magnus may have played a role in the conflict.
Whatever the cause may have been, Ysgramor and his 500 companions were successful in pursuing their aggressive campaign of vengeance. Eventually the falmer were driven back to the isle of Solstheim where one final battle was recorded in history. This battle was known as Battle of the Moeresing, the fight lead to the death of the snow elf prince. A 12 year old nord caused the death of him. This was the last falmer activity recorded on surface.
Though on surface they are persisted as legends and folklore to be the enemy of the story, they were believed to be ended for good by ancient nordic people. Even the historians of Tamriel believed they were killed off and that an encounter with one was merely a tall tale. These encounter tales were supported primarily by folklore. All of these extinction theories were proven incorrect as the falmer are still around.
Enslavement by DwemerEdit
Scattered and without a leader, the falmer fled underground and were offered protectino from another lost race of elves called dwemer. Then the dwemer were known as dwarves who had a mastery in amazing architecture and fearsome weapons. At one point the dwemer fed the falmer a toxic fungi which rendered the falmer as blind. The remaining numbers of falmer were made into slaves and servants, only to those who posed as their saviors.
Dwemer kept the toxic fungi plant as a primary diet which not only blinded all the falmer but also their future descendants. This did not last forever because at one point the falmer stood up against the dwemer and fled deeper underground. From their new dwelling, the falmer came up with brutal campaigns in what they called the "War of the Crag". The war soon ended after returning to meet their former captors and find them disappeared.
Though the dwemer have been gone for a very long time, their mechanical centurions and devious traps are not the only deadly scar left behind. The dwemer cruelty will last a very long time. Some people are captured as slaves and taken to dwemer ruins where the falmer dwell, then the slaves likely die. A book about falmer studies stated that they have been dramatically increasing in sophistication, frequency, scale and boldness in more recent years. The scale and nature the falmer pose is unclear, but the gruesome scenes which characterize their presence leave no doubt as to their hostility or intent.
Journals reveal that the blindness of a falmer can render an adventurer invisible. However, this improves hearing which allows the falmer to use ambush tactics. An example includes holding onto the ceilings and dropping behind their targets. Even though they are blinded, kennels of venomous centipedes have been discovered in which they use them for armor. Falmer cannot read or write but many accounts state that falmer are interested in frost and lightning magic. The same notes claim the falmer are resisted to cold and vulnerable to fire.
Technology in falmer society is often used with the chaurus monsters, the falmer domesticate them for their chitin, poison and limbs. Weapons, armor, shelters, fences and chests are all constructed from the Chitin of domesticated chaurus.
Although falmer are often encountered in dwemer ruins, they never use their equipment and weapons.
Falmer also seem to have an advanced understanding of Alchemy. Poisons are a major part of their weapons, and well stocked alchemy stations can be found in many falmer caves.