Chp. 13, Not at Home

Huh... who knew it was actually Hobbit sized?

Smaug guesses from Bilbo’s riddles that the company is somehow involved with the men of Lake Town, so he flies there to get revenge. The hobbit and dwarves hide in the dark passage until they can't wait any longer. They slowly walk down towards Smaug’s lair. When Bilbo determines that Smaug is gone, the dwarves run out to the treasure super excited, remembering the happy days. Bilbo takes only a few things. One of them is the Arkenstone, a priceless gem that Thorin seeks but which the hobbit hides from him. Bilbo also finds a marvelous coat of mail made of mithril, a strong metal that is more valuable than silver or gold.
After they're done rummaging through the treasure Thorin leads the company through the passages of the mountain and to the source of the River. They still don't know what to do with Smaug when he returns. In the meantime, they are desperately hungry, so they follow the river down from the mountain to an old guard-post cavern. There, they rest, eat, and wdream about treasure.