The film takes place in the Shire, 60 years before the events of "The Lord of the Rings". Bilbo Baggins (Martin Freeman), a hobbit who lives in Bag End, is visited by the wizard Gandalf (Ian McKellen) and a group of dwarves led by Thorin Oakenshield (Richard Armitage). The dwarves are on a quest to reclaim their treasure, stolen by the dragon Smaug, and they need Bilbo's help to navigate the perilous journey to the Lonely Mountain.