Bilbo Baggins leaves his home in the Shire, he gives his greatest treasure to his heir Frodo: a magic ring that makes its wearer invisible. Because of the difficulty, Bilbo has in giving the ring away, his friend the wizard Gandalf the Grey suspects that the ring is more than it appears. Some years later, Gandalf reveals to Frodo that the ring is in fact the One Ring, forged by Sauron the Dark Lord thousands of years before to enable him to dominate and enslave all of Middle-earth.

Plot

Frodo sets off with three companions, fellow hobbits Merry, Pippin, and Sam. After a series of close calls and misadventures, where they are saved only by the timely intervention of the mysterious Tom Bombadil, they reach the town of Bree. (Tolkien 1-322)

Frodo puts on the Ring, revealing himself to the Black Riders. Their leader stabs him with a blade of evil enchantment, and he nearly dies as they race for Rivendell. The Nine Riders try to force Frodo's surrender, but a flood destroys their horses even as Frodo collapses into unconsciousness. Frodo wakes in Rivendell, where the wise Elrond has worked his healing magic to save the hobbit.

Soon Elrond calls a council of the representatives of elves, men, and dwarves to respond to the growing darkness in the world. The council reviews the history of the Ring from its forging to the recent discovery that Frodo's ring is the One. (Tolkien 1-322)

Devastated by the loss of Gandalf, the Fellowship flees to the elven wood of Lothlórien. Lady Galadriel shelters them for a while and offers wise counsel. Frodo offers the Ring to Galadriel, but she resists the temptation. When the Fellowship leaves, she gives them boats to continue their journey down the river Anduin as well as more powerful gifts.

Orcs attack them while traveling downriver, and they feel the presence of a winged Black Rider overhead, but they make it to the lawn of Parth Galen unharmed. There, they must decide whether to turn for Mordor and Mount Doom or to go to Minas Tirith, Boromir's home in Gondor.