Bilbo, a simple hobbit, is smoking his pipe one day when the wizard Gandalf appears and asks him to go on an adventure. He is confused and tells the wizard to come back the next day. The wizard does show up the next day, but only after thirteen dwarves have knocked at his door first. Bilbo is very frustrated by this, but he acts the part of the gracious host. The dwarves eat, speaking of their imminent journey to an old home beneath Lonely Mountain. Long ago, a dragon named Smaug chased their forefathers from the mountain and stole their treasure. The group now wants Bilbo to come along as their thief.
Bilbo wakes late the next morning, and is hurried along by Gandalf to join his fellow travelers. They begin their journey. Before long, they have gone further from Hobbiton than Bilbo ever has before. One night, Gandalf disappears and they cannot make a fire because it is too wet and cold.
However, they see a fire in the distance. Thorin, the leader of the dwarves, sends Bilbo ahead to investigate. There are three trolls eating mutton around a fire. Bilbo tries to pick a pocket but is captured. Soon, all of the dwarves are captured. Gandalf returns and causes trouble between the trolls, until the suns rises and the trolls turn to stone.
The party travels for a while and arrives at a magical place called Rivendell. They stay here for a while and get fresh supplies. They leave and enter the mountains. Their path is dangerous and it begins to rain very hard. They take shelter in a cave and fall asleep. Bilbo wakes to see the ponies being stolen. They are all grabbed by goblins, except for Gandalf, who makes himself disappear. In the...