The film takes place in the Shire, 60 years before the events of The Lord of the Rings. The story follows Bilbo Baggins (Martin Freeman), a quiet and unassuming hobbit who lives a peaceful life in his cozy hobbit hole. However, his life is disrupted when the wizard Gandalf (Ian McKellen) and a group of dwarves, led by Thorin Oakenshield (Richard Armitage), arrive at his doorstep. The dwarves are on a quest to reclaim their treasure, stolen by the dragon Smaug, and they need Bilbo's assistance to navigate the perilous journey.