Khajiit are cat-like people who come from Elsweyr, known for high intelligence and agility. These traits make them very good thieves and acrobats, but Khajiit are also fearsome warriors. However, they are rarely known to be mages. Khajiit mostly stay on land, but piracy and Skooma trade does draw some to work as sailors.
Khajiit anatomy differs greatly from both men and elves, not only because of their fur, tail, and sometimes toe-walking stance, but also their digestive system and metabolism. Khajiit, Argonians, and Imga are the so-called "beast races" of Tamriel because of these large differences. Khajiit have a lifespan similar to that of humans. There are no well-documented cases of cross-breeding between Khajiit and other races, though there are rumors of such a thing. The foreign appearance and behavior of Khajiit make them common targets of racial discrimination.
For more information, see the main lore article.
The Khajiit of Elsweyr can vary in appearance from nearly Elven to the cathay-raht "jaguar men" to the great Senche-Tiger. The most common breed found in Morrowind, the suthay-raht, is intelligent, quick, and agile. Khajiit of all breeds have a weakness for sweets, especially the drug known as skooma. Many Khajiit disdain weapons in favor of their natural claws. They make excellent thieves due to their natural agility and unmatched acrobatics ability.
Spell: Eye of Night
Power: Eye of Fear
The best way to summarize the Khajiit is that it gets to go where it wants and take what it wants. The major increase in Acrobatics should make it significantly easier to navigate through elevated terrain, not to mention take a fall. The other bonuses they get are all minor but work together almost seamlessly. It should go without saying that this is the race of a thief or assassin.
In fact, the only noticeable weakness is what it shares with Argonians. The restriction of limited headgear and outright lack of shoes takes away a lot of things you can use.