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Sounds like David Lynch's Mulholland Dr. from 2001. Mulholland Drive (stylized onscreen as Mulholland Dr.) is a 2001 American neo-noir mystery film written and directed by David Lynch and starring Naomi Watts, Laura Harring, and Justin Theroux. It tells the story of an aspiring actress named Betty Elms (Watts), newly arrived in Los Angeles, California, ...


I haven't seen it to confirm that every single actor is a little person, but The Terror of Tiny Town is the film that comes immediately to mind.

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