Dwarf galaxies, although intrinsically faint and containing only modest stellar populations, provide an unusually sensitive testing ground for understanding how structure emerges in a cosmological context. Their shallow gravitational potentials make them particularly responsive to environmental influences and internal feedback, allowing researchers to probe physical processes that are harder to isolate in larger systems. Over the past decade, advances in numerical modeling—ranging from finely resolved hydrodynamic calculations to large-volume N-body suites—have offered increasingly detailed views of their kinematic evolution, star formation cycles, and dark matter configurations. Modern simulations now reproduce several of the empirical relationships observed in nearby dwarfs, including trends connecting mass, size, chemical enrichment, and luminosity. However, uncertainties in how feedback is implemented still produce noticeable variation among models. A long-standing tension involves the predicted shape of central dark matter profiles. Many simulations generate steep cusps, even though observations frequently point to shallower cores. Energetic stellar activity has been proposed as a mechanism for reshaping these regions, yet its effectiveness depends sensitively on resolution and feedback prescriptions. Another unresolved issue concerns the unexpectedly small number of known satellites in the Local Group compared with the abundance of low-mass halos in ΛCDM predictions. Recent work indicates that many such halos may host extremely faint systems that elude current surveys. Large simulation programs such as FIRE, APOSTLE, and NIHAO pursue these questions with differing assumptions and numerical strategies. Each captures certain aspects of dwarf galaxy evolution, but none fully replicates the diversity seen observationally. Considering results from multiple frameworks remains essential for constructing a comprehensive picture of how these small galaxies form, evolve, and interact with their environments.