Bilbo Baggins lives a quiet, peaceful life in his comfortable hole at Bag End. Bilbo lives in a hole because he is a hobbit—one of a race of small, plump people about half the size of humans, with furry toes and a great love of good food and drink. Bilbo is quite content at Bag End, near the bustling hobbit village of Hobbiton, but one day his comfort is shattered by the arrival of the old wizard Gandalf, who persuades Bilbo to set out on an adventure with a group of thirteen militant dwarves. The dwarves are embarking on a great quest to reclaim their treasure from the marauding dragon Smaug, and Bilbo is to act as their “burglar.” The dwarves are very skeptical about Gandalf’s choice for a burglar, and Bilbo is terrified to leave his comfortable life to seek adventure. But Gandalf assures both Bilbo and the dwarves that there is more to the little hobbit than meets the eye.
Shortly after the group sets out, three hungry trolls capture all of them except for Gandalf. Gandalf tricks the trolls into remaining outside when the sun comes up, and the sunlight turns the nocturnal trolls to stone. The group finds a great cache of weapons in the trolls’ camp. Gandalf and the dwarf lord Thorin take magic swords, and Bilbo takes a small sword of his own.
The group rests at the elfish stronghold of Rivendell, where they receive advice from the great elf lord Elrond, then sets out to cross the Misty Mountains. When they find shelter in a cave during a snowstorm, a group of goblins who live in the caverns beneath the mountain take them prisoner. Gandalf leads the dwarves to a passage out of the mountain, but they accidentally leave behind Bilbo.