- A reference guide and manual in Russian for Heroes 3.

I wonder if anyone has seen dwarves resist this? And is it even possible?

It's easy to check. Equip Thorgrim with resistance artifacts and attack the dragonflies. I've never seen them resist the ability, neither the dragonfly's weakness, nor the horse's blindness, nor paralysis, etc.

Added after 1 minute

The dragonfly's dispel is a unique spell; it removes absolutely any magic.

The dragonfly's dispel is not a simple dispel; it only removes good magic and leaves the bad magic, it works on golden dragons when they have a magic mirror cast on them.