Dwarf horses, well that’s something new to me, and its cute! Koda, the smallest horse in Australia is shorter than most dogs, and only slightly taller than cats. The American miniature horse is a dwarf even for his breed. Doctors are surprized he’s still living despite his unfavorable medical condition. It does take a lot of money to keep him healthy, the owner has already paid $8200 in bills to the vet, and may have to spend another $16,500.