The dwarves selectively bred owlbears for toughness, ferocity, and slightly more discipline and intelligence. They also managed to introduce a bulette trait they considered desirable into the creatures: specifically, the ability to burrow rapidly. The dwarves termed the result "dire owlbears," although that label isn't really correct. Most "dire" creatures are primitive branches of a family tree that managed to survive for eons unchanged from more savage versions, usually in isolated regions far from civilization.

Because of the armor plating they wear, dire owlbears are sometimes misidentified as mutated or freakish bulettes by frightened travelers and farmers whose horses and other livestock these monstrosities prey on.

Huge (8' tall, 1,500 pounds), ill-tempered, carnivorous bear-like creature with the face of an owl. Owl bears are found in dense forests and underground.