Bard comes to Thorin and produces the Arkenstone. Bilbo explains how it has come into his possession, which enrages Thorin. Gandalf then appears. Thorin promises Bard to redeem the stone with one-fourteenth of the hoard. Bard goes out to meet Dain, approaching with his five hundred dwarves, and refuses to allow him to pass.
Elvenking wants a reconciliation, but the dwarves strike. Gandalf warns of the Wargs and Goblins that may attack. The Battle of Five Armies takes place: the Goblins and wild wolves (Wargs) oppose the elves, men, and dwarves. The eagles who earlier saved Bilbo and the dwarves from the Wargs approach. Bilbo is struck with a stone and passes out.
