As a suffix (erhua 儿化), 儿 merges with the previous syllable and adds an -r sound. This is characteristic of Beijing dialect: 这儿 (zhèr, here), 哪儿 (nǎr, where), 一点儿 (yīdiǎnr, a little).
usage
As a standalone character: 儿子 (son), 女儿 (daughter), 儿童 (children). As a suffix it adds a casual, affectionate, or diminutive feel.