Bilbo Baggins receives an unexpected visit: By Gandalf the wizard and 13 dwarves. After long hesitation the little hobbit is convinced to join the leader Thorin for an expedition into the realm of dwarves to retrieve a stolen treasure.
The unusual party is ambushed and captured by three mighty trolls. Gandalf is able to liberate the companions and the further journey leads them to their elven friend Elrond.
After an ambush by orcs the hobbit manages to escape. He meets the old Gollum at an subterranean lake and steals the ring from him that turns its wearer invisible. On the other side of the Misty Mountains Bilbo rejoins with the dwarves.
The journey leads to Beorn, a giant of good nature who turns into a bear at night. He advises the friends on how to reach the dragon's lair. But first the hobbit and the dwarves have to traverse the fearsome Mirkwood.
In the Mirkwood the dwarves fall into the traps of giant spiders. Using the ring's power, the hobbit Bilbo manages to free his friends. But they get captured by elves on the very next day who regard them dangerous enemies.
The dwarves manage to escape from the elven realm using wine barrels thanks to Bilbo. They reach the human settlement Lake-town and travel to the Lonely Mountain to search for the entrance to the dragon's lair using Thorin's Moon-letters.
The friends have reached the desolation of the dragon. Bilbo gains entry to the dragon's lair and meets the sleeping Smaug. Using cunning questions and riddles the hobbit learns of the dragon's weakness.
Bilbo steals the Arkenstone, heart of the dwarven treasure. Smaug fell during the battle at Lake-town. News of the guardian's death quickly spreads. But another battle is impending.
