Chapters 12-15

Chapter 12: Inside Information

The passage into the mountain opens. Thorin picks Bilbo to snoop inside. Bilbo puts in his ring and walk down a long dark tunnel into Smaug's lair. Bilbo sees Smaug the the dragon asleep on piles of treasure. Smaug is red and gold and enormous. Bilbo is extremely scared but works up the courage and steal a golden cup from 1 of the piles of gold. Bilbo runs out and brings the cup to the dwarves. Smaug wakes up and is extremely cross when he notices the cup is gone he flies around outside the mountain and breathes fire and destroys everything in his site. Bilbo and his crew hide in a passage but Bombur and Bofur have not come with them. Thorin saves Bofur and Bombur with a rope and Smaug can not find them. The dwarves and bilbo stay inside the tunnel for a day and the next day Smaug returns to his den and falls asleep. Bilbo gains enough courage to go back into the dragon's lair but Bilbo sees Smaug is faking beeing asleep and is wide awake, waiting for Bilbo. Smaug can not see Bilbo but can smell him and greets Bilbo. Bilbo answer Smaug only in riddles which keeps Smaug distracted. Bilbo tricks Smaug into showing his belly which reveals an open patch in Smaug's armor. Smaug is furious and Bilbo runs out of the cavern. Bilbo and the dwarves hide in the tunnel again but an avalanche comes down. They are trapped inside the mountain.

Chapter 13: Not At Home

Smaug guesses from Bilbo's riddles that Bilbo is involved with Lake Town so Smaug flies over there are and wreaks vengeance. Bilbo and the dwarves stay into the tunnel until they can't stand it anymore. The crew creeps into Smaug's lair and steal as much as they can but Bilbo takes only a few things. Bilbo finds the Arkenstone which Bilbo knows Thorin is seeking out but decides to keep it for himself. Bilbo also finds a coat made of mithrill which is more valuable than gold or silver. After the crew has stolen some of the gold Thorin leads the crew out of Smaug's lair and follows the source of a running river. They are desperately hungry and go to an old gaurd-post cavern. There they eat, rest and think about where Smaug has gone.

Chapter 14: Fire And Water

Meanwhile Smaug makes his way to Lake town and starts destroying the town and burning all houses. Eventually Smaug destroys everything and the whole town is burning. One of the archers, Bard tries to defend Lake town by shooting Smaug. Bard finds Smaug's weak spot and kills Smaug. Birds tell the dwarves the news of Smaug's death.

Chapter 15: The Gathering Of The Clouds

When the dwarves get the news of Samug's death they celebrate but it is short lived because the bird tells theme that there are many humans and elves marching towards them. Thorin makes a gate around the mountain and secures it. The humans come and ask the dwarves and Bilbo for some of the treasure because of the destruction they have suffered. Thorin says no because he feels that they own nothing to them because the treasure was originally theirs. Bard asks Thorin to reconsider but Thorin does not want to give any treasure to them. Bilbo wants to share the wealth but Thorin says that Bilbo has no say in the discussion.