The story begins in the Shire, where the Hobbit Frodo Baggins inherits the Ring from Bilbo, his uncle and guardian. Neither is aware of its origin and nature, but Gandalf the Grey, a wizard and old friend of Bilbo, suspects the Ring's identity. When he becomes certain, he strongly advises Frodo to take it away from the Shire. Frodo leaves, accompanied by his gardener and friend, Samwise ("Sam") Gamgee, and two cousins, Meriadoc ("Merry") Brandybuck and Peregrin ("Pippin") Took. They nearly encounter the Nazgûl while still in the Shire, but shake off pursuit by cutting through the Old Forest, where they are aided by the enigmatic Tom Bombadil, who alone is unaffected by the Ring's corrupting influence. After leaving the forest, they stop in the town of Bree where they meet Strider, who is later revealed to be Aragorn, Isildur's heir. He persuades them to take him on as guide and protector. They flee from Bree after narrowly escaping another assault, but the Nazgûl follow and attack them on the hill of Weathertop, wounding Frodo with a Morgul blade.
and attack them on the hill of Weathertop, wounding Frodo with a Morgul blade. Aragorn leads the hobbits toward the Elven refuge of Rivendell, while Frodo gradually succumbs to the wound. The Ringwraiths nearly overtake Frodo at the Ford of Bruinen, but flood waters summoned by Elrond, master of Rivendell, rise up and overwhelm them.
Frodo recovers in Rivendell under the care of Elrond. The Council of Elrond reveals much significant history about Sauron and the Ring, as well as the news that Sauron has corrupted Gandalf's fellow wizard, Saruman.