Dwellers in the Mirage
A. Merritt
 The novel concerns American Lief Langdon who discovers a warm valley in Alaska. Two races inhabit the valley, the Little People and a branch of an ancient Mongolian race and they worship the evil Kraken named Khalk'ru which they summon from another dimension to offer human sacrifice. The inhabitants recognize Langdon as the reincarnation of their long dead hero, Dwayanu. Dwayanu's spirit possesses Langdon and starts a war with the Little People. Langdon eventually fights off the presence of Dwayanu and destroys the Kraken.