The brilliant dwarf actor Michael Dunn (best known for his recurring role as Dr. Miguelito Loveless on TV's Wild, Wild West) was nominated for Best Supporting Actor in 1965's The Ship of Fools. He was also nominated for the 1964 Tony Award as Best Supporting or Featured Actor (Dramatic) for The Ballad of the Sad Cafe but his career was sadly frustrated by Hollywood's lack of imagination in his range as an actor and he was rarely cast in roles equal to his talent and though he made some memorable television guest appearances in Star Trek and Rod Serling's Night Gallery, he was primarily seen in low-budget horror films like Murders in the Rue Morgue (1971), The Werewolf of Washington (1974) and The Mutations (1974). He died in 1973 at the age of 38 from complications of alcoholism.

Some visitors to madbeast.com have suggested that this answer should include Linda Hunt, who won the 1982 Best Supporting Actress Oscar for her performance as male Indonesian dwarf photographer Billy Kwan in The Year of Living Dangerously. The 4'9" Hunt was diagnosed with hypopituitary dwarfism (a condition in which the pituitary gland does not release enough growth hormone) in her teens, but does not possess the physical characteristics unique to sufferers of dwarfism.

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