 He therefore agreed to assist a party of Dwarves, led by Thrór's grandson Thorin Oakenshield, who set out to recapture the mountain and kill the dragon.Assuming that Smaug would not recognize the scent of a hobbit, Gandalf recruited the hobbit Bilbo Baggins to join the quest.Upon reaching Erebor, the Dwarves sent Bilbo into Smaug's lair, and he was initially successful in stealing a beautiful golden cup as Smaug slept fitfully.