Capture of Thorin’s party by the spiders and Thranduil, the elf king of Mirkwood
After Gandalf parted and left for Rivendell, Thorin and the dwarves with Bilbo Baggins eventually lost track from the trail that Gandalf informed. Gandalf didn’t know that the darkness of Dol Guldur altered the trails inside Mirwkood and Thorin’s party was trapped by the spiders of Mirkwood.
Bilbo Baggins would use the One Ring to conceal himself while he pulled out the elf dagger and would name it ‘Sting’.
With the help of Bilbo Baggins, the dwarves defeated the spiders, however they were later captured by the elves of Mirkwood and brought in front of Thranduil.
Escape from Mirkwood to Lake Town(Esgaroth)
Bilbo Baggins once again used the One Ring to cloak himself and released Thorin and the dwarves from their prisons.
Bilbo Baggins and the dwarves would stuff themselves inside wine barrels and they would toss themselves into the Forest River that would head to the Long Lake where Lake Town resided. '
Lake Town was the village of the humans that were once residents of Dale before Dale was destroyed by the dragon Smaug.
The humans of Lake Town would welcome the dwarves after hearing their conquest to slay Smaug and retake Erebor.
Riddle of the Back Door of Erebor and Bilbo Baggins
Thorin Oakenshield and Company with Bilbo would reach the Back Door of Erebor, the Lonely Mountains which Thorin’s grandfather Thror had sealed when the dwarves first escaped from Erebor from Smaug. However, the dwarves and Bilbo struggled to open the Back Door and had to set for days.
Bilbo Baggins, however, solved the riddle of the Back Door that was written in Moon Runes and interpreted by Elrond and on the last light of Durin’s Day, a giant thrush came in knocking on the Back Door of Erebor and finally the passage to Erebor opened.
The White Council’s attack on Dol Guldur
Gandalf assembled the White Council once again at Rivendell and urged an attack on Sauron before he recovered. Saruman who secretly longed for the One Ring and objected to the attack on Sauron before now feared that Sauron might find the One Ring ahead of him.
Saruman would plan to drive Sauron out of Dol Guldur which would give Saruman a chance to search for the One Ring at the Gladden Fields.
Saruman now approves of the attack at Dol Guldur and the White Council would attack Dol Guldur. Sauron has already fulfilled his objectives and gained sufficient power so he flees from Dol Guldur while he would pursue more of his plans to take over Middle Earth at the east assembling his allies while informing them of his return.
Bilbo Baggins and the dragon Smaug
Bilbo Baggins was chosen to scout the deeps of Erebor the Lonely Mountains as a hobbit, Bilbo Baggins was the only being that Smaug couldn’t identify by scent.
Bilbo Baggins was fascinated by the jewels and treasures of Erebor and sneaked a golden cup into his pocket while he saw the giant dragon Smaug sleeping.
Bilbo Baggins backed off and reentered the lair of the dragon. However, Smaug was able to even sense the golden cup that Bilbo stole and woke up with rage.
Bilbo Baggins quickly put on the One Ring that confused Smaug as Smaug could feel the presence of Bilbo Baggins but Smaug couldn’t recognize nor see Bilbo Baggins.
Bilbo Baggins would conversate with Smaug while he referred himself as nicknames such as luckwearer in riddles. Smaug was amused with the conversation with riddles with Bilbo Baggins where Bilbo Baggins discovered there was a part that wasn’t covered on the chest of Smaug.
Smaug started to grow bored and tried to incinerate Bilbo Baggins but he managed to escape from the nest of Smaug in the Lonely Mountains.
Smaug’s flight to Lake-Town(Esgaroth)
Bilbo Baggins would inform Thorin and the company that there was a part of Smaug’s chest that wasn’t covered with dragon scales.
A thrush was listening to the conversation between Bilbo Baggins and the dwarves. Smaug was, however, furious about the intrusion of a burglar and Smaug would suspect that the lake-town humans must have helped Bilbo Baggins.
Smaug would pick up its giant body and took flight to Lake Town to incinerate and destroy the town once and for all so no one would ever dare attempt to bother him.
Smaug’s rage and thunderous thrust would shake Erebor and Lonely Mountains would shake and collapse by the flight of Smaug. The dwarves were stuck at Erebor while Smaug flew to Lake Town.
Death of Smaug and Bard, the dragonslayer
Bard was a descendant of Girion who was the lord of Dale that was once a human town that prospered by trades with the elves of Mirkwood and the dwarves of Erebor.
Smaug started to attack Lake Town and put it into flames while Bard would lead humans to resist Smaug. The thrush that overheard the conversation of Bilbo Baggins and the dwarves would inform Bard that there was a weakness on Smaug on the chest that wasn’t covered with dragon scales.
Bard noticed the weak spot of Smaug that wasn’t covered with armor and Bard was able to snipe the weak spot of Smaug with a Black Arrow that was an heirloom of Girion.
Smaug fell from the sky and the impact from Smaug’s drop from the sky would destroy Lake Town.
Return of the King Under the Mountain
Thorin Oakenshield and company took over Erebor after Smaug went after Lake Town. This marked the return of the Durin’s Folks to the Lonely Mountains and the revival of Erebor. Thorin would gift Bilbo Baggins a mithril armor that would later become inherited from Frodo Baggins.
Thorin Oakenshield would take the throne of Erebor, the kingdom of dwarves once again. After the dwarves also heard news of the death of Smaug, Thorin would start to fortify the main gates of Erebor once again.
Alliance of the wood-elves and humans of Lake-Town (Esgaroth)
Thranduil heard word of the dwarves that escaped by barrels from the elves of the river. After a while Thranduil even received word of the death of Smaug.
Thranduil would assemble an army of elves and headed to Erebor as Thranduil assumed that the dwarves would have died together with Smaug. Meanwhile, Bard started to lead the humans of Lake Town as they were recovering from the destruction that Smaug caused.
Thranduil and the elf army passed by Lake Town and gladly assisted the humans of Lake Town with food and medicine. Bard would befriend Thranduil as well and the elves would camp nearby Lake Town as they would provide aid to the humans.
Thranduil and Bard would together head to the Lonely Mountains of Erebor to claim the dwarf treasures as they’ve thought that Smaug must have killed the dwarves.
Both didn’t know that Smaug didn’t kill the dwarves and attacked Lake Town but headed directly to Lake Town and already Thorin Oakenshield and his company started to rebuild Erebor, the Kingdom under the Mountain.
Dispute of the Thorin, Bard and Thranduil, The Battle of the Five Armies begin
Bard and Thranduil’s army of men and elves were surprised that Thorin Oakenshield and the dwarves were still alive. Thorin Oakensheild, however, felt betrayed by Bard and the humans of Lake Town as they’ve brought the wood elves from Mirkwood and Thranduil that have locked Thorin and the dwarves.
Bard demanded a share of the treasures of Erebor as compensation for the slaying of the dragon and for the fact that parts of the treasure originally belonged to the people of Dale but were theft by Smaug.
Thorin Oakenshield refused to compensate Bard as Bard has brought Thranduil and the elves while Bard refused to repel the elves as the elves sincerely aided the humans suffering from the destruction of Smaug.
Bard and Thranduil declared that they shall seize Erebor while Thorin would send word to his cousin Dain Ironfoot at the Iron Hills for reinforcements and the news that Erebor was reclaimed and the threat of Smaug is long gone.
The Battle of the Five Armies - Exile of Bilbo Baggins and the Arkenstone
Bilbo Baggins was concerned of the sheer anger and greed of Thorin Okaenshield and Bilbo Baggins stole the Arkenstone from the treasure chambers and secretly handed over the Arkenstone to Bard and Thranduil so they could negotiate with Thorin more instead of commending an attack.
Thorin Oakensheild became furious of Bilbo Baggins and casted off Bilbo Baggins from Erebor. However, Bilbo was successful in dragging Thorin back to the negotiation table.