In the peaceful Shire, Bilbo Baggins, a content and unadventurous Hobbit, is approached by the wizard Gandalf the Grey, who invites him on an adventure. Bilbo initially refuses but reconsiders when a company of thirteen dwarves, led by the warrior Thorin Oakenshield, unexpectedly arrives at his doorstep. The dwarves seek to reclaim their homeland, the Lonely Mountain, from the dragon Smaug, and they need a "burglar" to help them infiltrate the mountain. Bilbo, moved by their cause and the promise of an exciting life beyond his front porch, reluctantly agrees to join. The group sets out on an arduous journey across Middle-earth, facing perils and wonders beyond Bilbo's wildest dreams.

As they travel, they encounter various creatures and characters; trolls that capture them, elves that distrust them, and beasts that threaten their lives. Bilbo, initially struggling to find his place within the group, begins to prove his worth. A key moment comes when Bilbo encounters Gollum, a strange and twisted creature, in the depths of the Misty Mountains. Their game of riddles results in an unforeseen discovery that will impact not only Bilbo's fate but the future of all Middle-earth. The company's quest continues toward the Lonely Mountain, unaware of the dangers that still lie ahead on their quest to face Smaug.