Bilbo Baggins, the titular protagonist, is a respectable, reserved hobbit. During his adventure, Bilbo often refers to the contents of his larder at home and wishes he had more food. Until he finds a magic ring, he is more baggage than help. Gandalf, an itinerant wizard introduces Bilbo to a company of thirteen dwarves. During the journey the wizard disappears on side errands dimly hinted at, only to appear again at key moments in the story. Thorin Oakenshield, the proud, pompous head of the company of dwarves and heir to the destroyed dwarvish kingdom under the Lonely Mountain, makes many mistakes in his leadership, relying on Gandalf and Bilbo to get him out of trouble, but he proves himself a mighty warrior. Smaug is a dragon who long ago pillaged the dwarvish kingdom of Thorin's grandfather and sleeps upon the vast treasure.
The plot involves a host of other characters of varying importance, such as the twelve other dwarves of the company; two types of elves: both puckish and more serious warrior types; Men; man-eating trolls; boulder-throwing giants; evil cave-dwelling goblins; forest-dwelling giant spiders who can speak; immense and heroic eagles who also speak; evil wolves, or wargs, who are allied with the goblins; Elrond the sage; Gollum, a strange creature inhabiting an underground lake; Beorn, a man who can assume bear form; and Bard the Bowman, a grim but honourable archer of Lake-town.