Some fantasy stories use halfling to describe a person born of a human parent and a parent of another race, often a human female and an elf. Terry Brooks describes characters such as Shea Ohmsford from his Shannara series as a halfling of elf-human parentage.
In early editions of Dungeons & Dragons, there was a race of demi-humans known as hobbits that were very much like those found in The Hobbit and The Lord of the Rings. The Tolkien estate did not appreciate the resemblance and threatened legal action against TSR, the makers of Dungeons & Dragons. TSR renamed the folk halflings, another word coined by Tolkien for the race, but not as commonly used in the books.
Early Dungeons & Dragons halflings also seemed nearly identical to Tolkien's hobbits: They lived quiet lives in their homes away from adventure and, despite being well suited for the task of thievery, they seemingly would not accept a life of larceny. A very similar race, kender, appeared in the Dragonlance campaign that had a lifestyle much more suited to the thieves that most halfing player characters became. Third edition altered the halfling lifestyle to become more in line with how players played the race: They became troublesome opportunists, nomadic wanderers, and seekers of wealth.