As everyone is sleeping inside of the cave, Bilbo is unable to sleep because of a nightmare that becomes reality: the cave is occupied by goblins and Bilbo's yell is able to alert Gandalf, who disappears. Bilbo and the dwarves are captured, though, They are carried "down, down to Goblin-town" and the sounds are unpleasant. They are taken to a big fire-lit cavern and the Great Goblin demands to know their business. The dwarves are suspected as spies and allies of the elves. Great Goblin wants to know what brought the dwarves to his territory and Thorin explains that they are going to see relatives on the East side of the mountains. Other goblins say that a bolt of lightning struck some of their comrades and Thorin's sword is also indicative of his anti-Goblin intentions. The sword is called Orcrist, Goblin-cleaver, but the Goblins call it Biter. Great Goblin rushes towards Thorin but the lights go out and white sparks begin to burst, burning holes in the goblins. A sword flashes and kills the Great Goblin, and then a voice says "follow me quick." Bilbo and the others follow Gandalf but he Goblins are in close pursuit and Dori is grabbed from behind. Bilbo falls into blackness, bumps his head on a hard rock and remembers nothing more. Analysis:

This short chapter is important in developing several themes and motifs that recur in Tolkien's work. First, there is the image of the "cave," considered in terms of the theme of shelter. As the final destination of the travelers is a cave that is inhabited by the dragon Smaug, it does seem foolish for the young dwarf to select any cave as a safe resting place. Caves aren't safe. The old myth of Ulysses and Polyphemus offers images of caves, the hope for shelter and the reality of capitvity. This is an allusion that often appears in the novel. The caves harbor all sorts of things that are unknown because of the cave's darkness. This is explicated in the metaphors that liken the cave-dwelling goblins to weasels and bats. Also, the swords that are called Biter and Beater are archetypal lights that destroy the archetypal darkness of evil. In terms of characterization, we see Thorin's gallantry and leadership and also Gandalf's shrewd manipulation and navigation in the darkness. He relies upon a sort of invisibility that becomes powerful. Readers should look to the next chapters to see Bilbo's own emergence as a hero, foreshadowed by the gift received by Thorin and the invisibility used by Gandalf. By now, we can see that there are several motifs in the word that can be considered as juxtapositions, in that they are pairs of contrasts, and this is not always the case.