confers invisibility, Bilbo escapes and rejoins the dwarves, improving his reputation with them. The goblins and Wargs give chase, but the company are saved by eagles. They rest in the house of Beorn. The company enters the dark forest of Mirkwood without Gandalf, who has other responsibilities. In Mirkwood, Bilbo first saves the dwarves from giant spiders and then from the dungeons of the Wood-elves. Nearing the Lonely Mountain, the travellers are welcomed by the human inhabitants of Lake-town, who hope the dwarves will fulfil prophecies of Smaug's demise. The expedition reaches the mountain and finds the secret door. The dwarves send a reluctant Bilbo inside to scout the dragon's lair. He steals a great cup and, while conversing with Smaug, spots a gap in the ancient dragon's armour. The enraged dragon, deducing that Lake-town has aided the intruders, flies off to destroy the town. A thrush overhears Bilbo's report of Smaug's vulnerability and tells Lake-town resident Bard. Smaug wreaks havoc on the town, until Bard fires an arrow into Smaug's hollow spot, killing the dragon. When the dwarves take possession of the mountain, Bilbo finds the Arkenstone, the most-treasured heirloom of Thorin's family, and hides it away. The Wood-elves and Lake-men request compensation for Lake-town's destruction and settlement of old claims on the treasure. When Thorin refuses to give them anything, they besiege the mountain. However, Thorin manages to send a message to his kinfolk in the Iron Hills and reinforces his position. Bilbo slips out and gives the Arkenstone to the besiegers, hoping to head off a war. When they offer the jewel to Thorin in exchange for treasure, Bilbo reveals how they obtained it. Thorin, furious at what he sees as betrayal, banishes Bilbo, and battle seems inevitable when Dáin Ironfoot, Thorin's second cousin, arrives with an army of dwarf warriors. Gandalf reappears to warn all of an approaching army of goblins and Wargs. The dwarves, men and elves band together, but only with the timely arrival of the eagles and Beorn do they win the climactic Battle of Five Armies. Thorin is fatally wounded and reconciles with Bilbo before he dies. Bilbo accepts only a small portion of his share of the treasure, having no want or need for more, but still returns home a very wealthy hobbit roughly a year and a month after he first left. Years later, he writes the story of his