Between the ages of 13 and 15, James P. Blaylock was one of my favorite authors. This is the sequel to The Elfin Ship, and a better book in my opinion. I like Blaylock's ability to imbue his books with a great sense of wonder. In this book, Jonathan Bing, the cheese maker from Twombly Town, sets off on a trip down the river to visit his friend Squire Myrkle, the next King of the Linkmen. Linkmen, since you asked, are smaller than people, bigger than dwarves, like to wear shorts and pointy hats, and generally act like twelve year olds. But the squire has disappeared into the world of Balumnia (by staring into a magic marble for too long) and Jonathan and his friends Professor Wurtzle, Bufo Morinus, and Stick-a-Bush, set off to find him. (Yes, still retreating to the tried and true books of my youth. I will be getting to something "serious" before too long.)
What do You think about The Disappearing Dwarf (1983)?