Bilbo Baggins embarks on an adventure with a group of dwarves to reclaim their mountain home and its treasure from the dragon Smaug. Along the way, Bilbo faces challenges, battles enemies, and discovers his inner strength.

The dwarves, along with Bilbo Baggins and Gandalf the Grey, continue their quest to reclaim Erebor, their homeland, from Smaug. Bilbo Baggins is in possession of a mysterious and magical ring. In a flashback, Thorin Oakenshield arrives at Prancing Pony and is urged by Gandalf to begin a quest to reclaim the Arkenstone. Twelve months later, Bilbo and the company are chased by orcs and seek refuge in a house where they meet a skin-changer named Beorn. They enter Mirkwood, get captured by spiders, and then by Wood-elves led by Tauriel and Legolas. Bilbo helps the dwarves escape and they meet Bard, who smuggles them into Lake-town. They are captured, but Thorin convinces the townsfolk to help them. Gandalf battles the Necromancer and is captured. Tauriel and Legolas fight off orcs in Lake-town. Smaug chases the dwarves into the mountain, where they trick him into rekindling the forge and covering him with molten gold. Smaug escapes and heads to Lake-town.

In the epic conclusion to the adventures of Bilbo Baggins, the mighty dragon Smaug is unleashed upon the residents of Lake-town. As the dragon wreaks havoc across the land, various armies, including elves, dwarves, and humans, must unite to defeat this common enemy and restore peace to Middle-earth. Along the way, deep corruption is revealed, unlikely friendships are formed, and honor and love are put to the test. The fate of Middle-earth hangs in the balance as the battle between good and evil reaches its climax.