 He is killed by Bard with a black arrow and his body falls on the boat carrying the fleeing Master of Lake-town.It is later revealed that Smaug's attack on Erebor was all part of Sauron's design, meaning that Smaug and Sauron were in league with each other.Smaug was considered one of the highlights of the second film of the series (as well as his burning of Lake-Town in the third film); several critics hailed him as cinema's greatest dragon.