The Silmarillon

Then the Dwarves looked upon the work of their fathers, and they beheld with wonder the shining jewel of Feanor; and they were filled with a great lust to possess them, and carry them off to their far homes in the mountains. But they dissembled their mind, and consented to the task.

Long was their labour; and Thingol went down alone to their deep smithies, and sat ever among them as they worked. In time his desire was achieved, and the greatest of the works of Elves and Dwarves were brought together and made one; and its beauty was very great, for now the countless jewels of the Nauglamir did reflect and cast abroad in marvellous hues the light of the Silmaril amidmost. Then Thingol, being alone among them, made to take it up and clasp it about his neck; but the Dwarves m that moment withheld it from him, and demanded that he yield it up to them, saying: 'By what right does the Elvenking lay claim to the Nauglamir, that was made by our fathers for Finrod Felagund who is dead? It has come to him but by the hand of Hurin the Man of Dor-lomin, who took it as a thief out of the darkness of Nargothrond.' But Thingol perceived their hearts, and saw well that desiring the Silmaril they sought but a pretext and fair cloak for their true intent; and in his wrath and pride he gave no heed to his peril, but spoke to them in scorn, saying: 'How do ye of uncouth race dare to demand aught of me, Elu Thingol, Lord of Beleriand, whose life began by the waters of Cuivienen years uncounted ere the fathers of the stunted people awoke?' And standing tall and proud among them he bade them with shameful words be gone unrequited out of Doriath.

Then the lust of the Dwarves was kindled to rage by the words of the King; and they rose up about him, and laid hands on him, and slew him as he stood. So died in the deep places of Menegroth Elwe Singollo, King of Doriath, who alone of all the Children of Iluvatar was joined with one of the Ainur; and he who, alone of the Forsaken Elves, had seen the light of the Trees of Valinor, with his last sight gazed upon the Silmaril.

Then the Dwarves taking the Nauglamir passed out of Menegroth and fled eastwards through Region. But tidings went swiftly through the forest, and few of that company came over Aros, for they were pursued to the death as they sought the eastward road; and the Nauglamir was retaken, and brought back in bitter grief to Melian the Queen.

Yet two there were of the slayers of Thingol who escaped from the pursuit on the eastern marches, and returned at last to their city far off in the Blue Mountains; and there in Nogrod they told somewhat of all that had befallen, saying that the Dwarves were slain in Doriath by command of the Elvenking, who thus would cheat them of their reward.

Then great was the wrath and lamentation of the Dwarves of Nogrod for the death of their kin and their great craftsmen, and they tore their beards, and wailed; and long they sat taking thought for vengeance. It is told that they asked aid from Belegost, but it was denied them, and the Dwarves of Belegost sought to dissuade them from their  purpose; but their counsel was unavailing, and ere long a great host came forth from Nogrod, and crossing over Gelion marched westward through Beleriand.

Upon Doriath a heavy change had fallen. Melian sat long in silence beside Thingol the King, and her thought passed back into the starlit years and to their first meeting among the nightingales of Nan Elmoth in ages past; and she knew that her parting from Thingol was the forerunner of a greater parting, and that the doom of Doriath was drawing nigh. For Melian was of the divine race of the Valar, and she was a Maia of great power and wisdom; but for love of Elwe Singollo she took upon herself the form of the Elder Children of Iluvatar, and in that union she became bound by the chain and trammels of the flesh of Arda. In that form she bore to him Luthien Tinuviel; and in that form she gained a power over the substance of Arda, and by the Girdle of Melian was Doriath defended through long ages from the evils without. But now Thingol lay dead, and his spirit had passed to the halls of Mandos; and with his death a change came also upon Melian. Thus it came to pass that her power was withdrawn in that time from the forests of Neldoreth and Region, and Esgalduin the enchanted river spoke with a different voice, and Doriath lay open to its enemies.

Thereafter Melian spoke to none save to Mablung only, bidding him take heed to the Silmaril, and to send word speedily to Beren and Luthien in Ossiriand; and she vanished out of Middle-earth, and passed to the land of the Valar beyond the western sea, to muse upon her sorrows in the gardens of Lorien, whence she came, and this tale speaks of her no more.