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Bilbo Baggins is a hobbit, a little, beardless monster with hairy feet who's quite social and enjoys the conveniences of home. His mother was a member of the Took family, that are considered a tiny intermittent because they were rumored to have intermarried with a fairy and because they adore adventure. Bilbo himself is quite well off and fond of food and clothes.

His property is a beautifully furnished hole in the floor.

Bilbo invites him to tea the next day; Gandalf makes a peculiar mark on the exterior of Bilbo's front door and leaves.

They require refreshments, and while they eat, they speak, smoke, sing, and play musical instruments.

The dwarves sing of seeking a treasure which lies buried beneath a mountain guarded by a dragon. Thorin, their leader, addresses the band, such as Bilbo, whom he calls for a fellow conspirator, reminding them that they are embarking the following day on a trip where they might not return. Bilbo, who had not planned to join the team, becomes frightened and drops into a match. When he comes to, he also learns that Gandalf had advertised his services as a burglar -- the significance of the key mark on the door -- trusting that the dwarves would amuse him. Bilbo agrees to proceed on the trip, partly from pride, because the dwarves are doubtful of his skill.

Gandalf takes out a map made by Thror, Thorin's grandfather, which shows where the treasure is concealed. He points to some key entry marked on the map also gives Thorin the secret to it. Bilbo asks about the business information of the adventure. They go to bed with plans to get an early start the following morning.

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