The Hobbits reach the The Prancing Pony inn at Bree, where Frodo uses a false name, Underhill.
Gandalf arrives in the Shire for Bilbo's Farewell Birthday Party. Bilbo leaves the Shire permanently.
Aragorn, Legolas, and Gimli follow the trail of the Orcs and find several clues as to what happened with Merry and Pippin.
Aragorn, Legolas, and Gimli are accompanied by the Grey Company as they pass through the Paths of the Dead between Rohan and Gondor.