Summary
On his 111th birthday Bilbo Baggins decides to use the magic Ring which renders its wearer invisible. Having bequeathed the Ring to his heir, Frodo Baggins, Bilbo vanishes before the very eyes of his friends, never to return (to them).
Gandalf, still the Grey Wizard, is worried about the Ring because he suspects that it is the One Evil Ring made by the wicked Lord Sauron ...long ago. Gandalf's worries are not unfounded, for Middle Earth has fallen on dark times and ominous things are happening. The mighty forest once called Greenwood the Great is haunted by evil powers and now goes by the name of Mirkwood (darkwood). Driven out of Mirkwood by the White Council of Elves, the forces of darkness assemble in eastern Mordor, their ancient home where Sauron once held sway. Gandalf designes a test which proves that this is indeed Sauron's Ring. Though Sauron has been conquered, a long time ago, his spirit was revived in Mirkwood, and has since returned to Mordor. The Ring passed into the hands of Gollum, from whom it was taken by Bilbo Baggins (see 'The Hobbit').
Gandalf tells Frodo the story of the Ring, adding that through Gollum the Dark Powers have learnt where the Ring is now and determined to get it...back. The only way to avert the danger is to destroy the Ring in the fire it was once wrought in, the Crack of Doom.
Frodo accompanied by three other hobbits, Sam, Merry and Pippin, sets out on this perilous journey carrying the Ring. They encounter the evil Black Riders, meet with friendly elves, and are rescued from their doom by Tom Bombadil, the embodiment of goodness, being as old as the world. At an inn they meet Strider the Ranger from the North, a mortal man whose real name is Aragorn (as they later find out). He acts as their guide on the way to Rivendell, the Last Homely House and home of Elvenking Elrond. In Rivendell the White Council is to be assembled. Escaping from another attack by the Black Riders the four hobbits arrive at Rivendell, where the White Council the problem of the Ring discusses. Frodo is almost mortally wounded by one of the Riders and is only just saved in time, he is cured by the healing hands of Elrond. Many delegates from the elves and dwarves are gathered there, and Frodo and his friends learn more about the history of Middle Earth and the great war in which Sauron was defeated. Boromir, the son of Denethor, Steward of the country of Gondor, tells the council that Gondor is still holding out against the rising power of Mordor, but is badly in need of help. Aragorn surprises everybody by declaring that he is the right ful heir to the throne of Gondor and hat the time has come for him to resume his place.
Gandalf, who's also there, reveals that Saruman the White Wizard, Gandalf's master, has turned traitor. The Ring must be destroyed as soon as possible; someone has to be found, willing to carry it further to Mount Doom, where it must be thrown into the Crack of Doom, into the fire in which it was forged. Frodo is the only one to volunteer for this task, be it with a heavy heart. As it is impossible for him to go alone, a Fellowship is formed to accompany him: Gandalf, Aragorn, Boromir Legolas the elf, Gimli the dwarf and the hobbits Sam, Merry and Pippin.
The Fellowship meets with Wargs and Orcs and have to fight their way through these enemies. They find their escape route blocked by the most fearful opponent of all, a Balrog. Gandalf decides to confront the Balrog alone, as the others can then escape. In the battle that follows between the two of them, they both fall down into a deep abyss and vanish from the eye. Aragorn now becomes the leader of the Fellowship. For a while they find shelter in Lothlorien, where the Elfqueen Galadriel gives them a vial containing magic water. With Gandalf gone, quarrels emerge in the Fellowship and mutual loyalty declines. Boromir challenges Aragorn's leadership, insisting that the Ring should be first be taken to Gondor before it is destroyed forever. Boromir even tries to take the Ring from Frodo by force, but Frodo, hoorified by this treachery, flees and travels on to the Land of Shadows accompanied by only his loyal buddy Sam. The other members of the Fellowship set forth in search of Frodo, but the unity among them is broken and they split up. The forces of Good and Evil are gathered for battle.