Alfheim exists on the highest level of the World Tree along with Asgard and Vaneheim. Little is known about this realm. Its inhabitants are the light elves. The few appearances of the light elves have shown them to be peaceful, friendly, happy beings with few if any weapons. Physically their shape ranges from physically looking like humans with pointed ears to slightly more alien shapes. The general climate of the realm has been shown two different extremes. Most of the time it has been shown to have a spring, temperate climate. Forests have been observed.
The other extreme has shown Alfheim to be a land of ice and snow. The elves look like the elves of lore, but blue. It is unknown of this change was brought about due to the rebirth of Ragnarok or if this was another section of Alfheim. The blue light elves share many of the same characteristics of the others being peaceful, playful, friendly beings.