the main character in a story called Rumpelstiltskin by Jacob and Wilhelm Grimm. Rumpelstiltskin is an ugly dwarf (=a creature like a very small man) who teaches a young girl how to make straw into gold thread by using a spinning wheel. As a reward for teaching her this, he says she must give him her first child. She becomes queen and has a child, but Rumpelstiltskin says he will not take her child if she can discover what his name is within three days. By chance a servant hears him saying his name, and when the girl tells him what it is, he gets so angry that he dies.
Definition from the Longman Dictionary of Contemporary English Advanced Learner's Dictionary.