Bilbo remembers that Gandalf is coming for tea time, but Gandalf doesn’t come; instead, the dwarves do. Thorin, Gandalf, and the rest of the dwarves meet Bilbo and convince him to help steal the dwarven treasure back from Smaug, an evil dragon, but Bilbo is scared of leaving his hobbit hole. When they set out on their adventure, they find 3 trolls, and Bilbo tries to steal stuff from them but fails because he hesitates and almost kills the group.
The adventurers come to the last homely home, an elven sanctuary in the valley of rivendell and get supplies. Then the company starts to trek through the mountains but they are soon captured by goblins.
Bilbo is placed is a dark cave with a creature who is referred to as Gollum and he finds a ring that gives him invisibility. He and Bilbo play a game of riddles, which bilbo wins, helping him to escape. As he escapes he finds the dwarves and they get tracked down by goblins and wargs(evil wolves), but they are rescued by the Eagles of the misty mountains.
The group meets Beorn, a skinchanger(can turn from a bear to a man), he gives them food and ponies to get them to Mirkwood(a forest with many evil creatures). Before they enter the forest Gandalf leaves them to tend to other business in the south. In the forest the entire company, except thorin, gets captured by giant spiders, but Thorin is captured by the wood elves in Mirkwood.
In these chapters, the dwarves are captured by the wood elves, but Bilbo avoids the captors and sneaks the dwarves into barrels that are thrown down the river to the lake town of Esgaroth. In Esgaroth, the people of the town give a warm welcome to the adventurers. They give them supplies and ponies for the final stretch to the mountain.
In these chapters, the adventurers hike up to the secret entrance to the mountain, but they can’t figure out how to get in until Bilbo figures out how to open it. Once Bilbo gets into the mountain, he steals a cup and celebrates with the dwarves.
Smaug leaves the mountain, and the company starts to steal treasure and sneak it out through the front gate. Meanwhile, Smaug attacks Esgaroth because he knows they assisted the company. While he is pillaging, he is shot by Bard, a man from Esgaroth, and he dies.
In these chapters, the armies of the elves and men lay siege to the mountain because the men believe they are owed gold. So Thorin calls on his cousin, Dain, to bring his army and save them. Bilbo doesn’t agree with Thorin, so He takes the Arkenstone (Thorin’s prized treasure) and gives it to Bard and the Elven king to persuade them to leave.
In these chapters, Dain arrives, and right before the battle starts, the Goblins from the north attack, trying to gain revenge for the death of the great goblin. So, the Dwarves, men, and Elves put their differences aside and fight the goblins and wargs. But when Bibo tried to climb a hill and assist in the fight, he was hit by a rock. When he woke up, he made amends with Thorin, and then Thorin passed on to live with his father and grandfather.
In this chapter, Bilbo, Gandalf, and Beorn travel back. Bilbo reflects on his journey with Gandalf, but when he gets home, Bilbo has to spend most of his treasure buying back all of his stuff that was sold at an auction.