Bilbo Baggins Hobbit; the protagonist of the story. Bilbo is invited by Gandalf to join him and the dwarves on their journey to the Lonely Mountain, home of Smaug the dragon, to reclaim the treasure that belongs to the dwarves. Often torn between his love of the comforts of home and his desire for adventure, he contributes to the successful accomplishment of the group's purpose and discovers within himself unsuspected resources of courage and ingenuity.
Gandalf Wizard; teacher, mentor, and protector of Bilbo; directs the dwarves' expedition to reclaim their treasure from Smaug.
Thorin The leader of the dwarves; grandson of Thror, descendent of Thrain the Old who was King under the Mountain when Smaug seized the treasure. The treasure and the throne are his birthright, and Gandalf gives him a map and a key to the Lonely Mountain left to him by Thror. He dies fighting in the Battle of Five Armies.
Balin, Dwalin, Bifur, Bofur, Bombur, Dori, Nori, Ori, Fili, Kili, Oin, Gloin The other twelve dwarves who go with Thorin, Gandalf, and Bilbo on the long journey.
Bert, Tom, and William Trolls from whom Bilbo takes the key to a cave from which he and the dwarves take gold and the swords they use in battle with the Goblins and in the Battle of Five Armies. The trolls are crude and violent and capture the dwarves in order to roast and eat them; the dwarves are rescued by Gandalf, who confuses the trolls into staying out past dawn and turning into stone.
Elrond An elf; the proprietor of the Last Homely House at the Edge of Wild and is a leader of the elves. He translates the runes on the swords taken from the trolls to reveal that they were originally used in the Goblin-wars and translates the moon-letters on Thorin's map to reveal the importance of Durin's Day.
Goblins Ugly, wicked creatures who live in a cave in the Misty Mountains. They capture Bilbo and the dwarves and eat their ponies. A number of them, including their leader the Great Goblin, are slain by Gandalf and Thorin using the swords taken from the trolls.
