Garden gnomes (German: Gartenzwerge, lit. 'garden dwarfs') are lawn ornament figurines of small humanoid creatures based on the mythological creature and diminutive spirit which occur in Renaissance magic and alchemy, known as gnomes. They also draw on the German folklore of the dwarf.

Traditionally, the garden figurines depict male dwarfs wearing red pointy hats. Typically, gnomes stand between one and two feet (30 and 60 cm). Originating as a decoration for the wealthy in Europe, garden gnomes are now prevalent in gardens and lawns throughout the Western world, among all social classes. They are regarded by some as kitsch.

In ancient Rome, small stone statues depicting the Greco-Roman fertility god Priapus, also a protector of beehives, flocks, and vineyards, were frequently placed in Roman gardens. Gnomes as magical creatures were first described during the Renaissance period by Swiss alchemist Paracelsus as "diminutive figures two spans in height who did not like to mix with humans". During this period, stone "grotesques", which were typically garishly painted, 1-metre-tall (3.3 ft) figurines, were commonly placed in the gardens of the wealthy. Among the figures depicted were gobbi (Italian for hunchbacks). In particular, Jacques Callot produced 21 versions of gobbi, which he engraved and printed in 1616.

By the late 18th century, gnome-like figurines made of wood or porcelain, known by names including "dwarves", had become popular household decorations in some parts of Europe. In particular, the area surrounding the town of Brienz in Switzerland was known for their production of wooden house dwarves. In Germany, these figurines became conflated with pre-existing folk stories and beliefs about dwarves (Zwerge; singular Zwerg) that they believed helped around the mines and on the farm.

The Dresden company Baehr and Maresch had small ceramic statues of "dwarves" or "little folk" in stock as early as 1841. Hence, while the claim has been contested, some credit Baehr and Maresch with creating the first garden gnomes.(German: Gartenzwerge). Within less than 10 years, statues of dwarves had spread from the provinces of Saxony and Thuringia, in particular, across Germany and into France. The manufacture of dwarves spread across Germany, with numerous other large and small manufacturers coming in and out of the business, each having its own particular style of design.

Garden gnomes spread to other countries in Europe in the 1840s and became particularly popular in France and Britain. In 1847, Sir Charles Isham, brought 21 terracotta gnomes manufactured in Germany by Philip Griebel back to Britain where they were called "gnomes" in English, and placed in the gardens of Isham's home, Lamport Hall in Northamptonshire. Nicknamed "Lampy", the only gnome of the original batch to survive is on display at Lamport Hall and insured for £1 million.

Use of the term "garden gnome" may originate from fact that German catalogues sold ornaments of dwarfs under the name gnomen-figuren, meaning miniature figurines.

From around 1860 onwards, Gräfenroda, a town in Thuringia long known for its ceramics, became increasingly associated with production of garden gnomes.