There was a boy who was friend with a creature with a long nose. Other creatures like him where not friendly and tried to hurt the boy. In the end the evil creature was swallowed by the earth.
I vaguely remember the creatures at some point watching a woman in a white dress
This was late 80s early 90s
You’re talking about “Legend”(1985). I remember the goblins watching the main actress and she was wearing a white dress. Maybe this is it?
Oh, and the evil goblins had really long noses. The star was Tom Cruise, not a boy at the time but looked like a young teenager.