Tiptoes centres on a man named Steve who comes from a family of dwarves. When his girlfriend Carol becomes pregnant, he worries that she will give birth to a dwarf as well.
In addition to Dinklage, the film stars Matthew McConaughey as Steve, Kate Beckinsale as Carol and Gary Oldman as Steve's dwarf brother Rolfe.
The film was poorly received and was particularly criticised for casting Oldman as a dwarf.
"It was sort of an amazing idea for a movie, but the result [of the new cut] was what we were fighting against - the cutesiness of little people," Dinklage told The New York Times.
He went on to say that a number of people expressed concerns about the film.
"There was some flak," he said. "'Why would you put Gary Oldman on his knees? That's almost like blackface.'
"And I have my own opinions about political correctness, but I was just like, 'It's Gary Oldman. He can do whatever he wants, and I'm so happy to be here'."
Dinklage can next be seen on the second season of Game of Thrones, which debuts on April 1 on HBO in the US and on April 2 on Sky Atlantic in the UK.
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Watch the trailer for Tiptoes below: