Gandalf tricks Bilbo into hosting a party for Thorin and his band of dwarves. They sing about reclaiming their treasure and kingdom from Smauga dragon on the Misty Mountains. Later, Gandalf shows a map showing a secret door into the Mountain and said that Bilbo will serve as the expedition’s “burglar”. When they start their journey, they come across many thing like trolls, goblins and wood elves.
When they get there Bilbo finds the secret door so Bilbo goes in to scout the dragon’s lair and finds a gap in Smaug’s armour. Smaug soon realizes that Gandalf and the others are coming to take bake the kingdom and their treasures. So he sets off to destroy Laketown.
Smaug destroys most of the village when Bardthe defender of the village shoots an arrow that kills Smaug and so when the dwarves take back the kingdom, Bilbo finds the Arkenstone which is what Thorin really wanted. Bilbo takes the Arkenstone and the Wood Elves and the LakeTown people go to Thorin and ask for some money to rebuild homes and other things. Thorin refuses and since he summoned his kin from the Iron Hills he then reclaims his position. Bilbo tries to trade money for the Arkenstone to head off a war, but Thorin does not allow. He banishes Bilbo, and the battle seems unwinnable, but Gandalf reappears to warn them of an army of goblins and Wargs. The dwarves, men and elves band together to defeat them and soon the mighty eagles and Beron come. Thorin is wounded and he dies.
Bilbo accepts only a small portion of Thorin’s share of the treasure, having no want or need for more, but still returns home a very wealthy hobbit.