While Smaug the spiteful dragon destroys the peaceful Laketown, Bilbo and the DWarves are watching from the Lonely Mountain which they believe they can now claim. The rejoicement comes to an end as Thorin takes to finding the Arkenstone owing to his growing obsession toWards it. In the meanwhile Gandalf, who was captivated at NacRomancer’s prison, is now set free.
Galadriel, Elrond and Saruman get into a battle with the Nazgul in an attempt to free him and defeat him ultimately. The weird wizard Radagast offers to help them and Gandalf is sent to a safe place with him. War for the future of Middle Earth is set on fire and the five armies including the orcs, dWarves, elves and people are all geared up. Bilbo leaves to the Shire with Gandalf where the latter shares that he knows about Bilbo’s ring.
