New peace

The New Peace is the restored order and prosperity that follows the destruction of Smaug, the defeat of the goblin and Warg armies in the Battle of Five Armies, and the reconciliation among dwarves, men, and elves. It marks the end of the Desolation of the Dragon and the beginning of a renewed era for the lands around the Lonely Mountain, Mirkwood, and the Misty Mountains, transforming the Wild into a safer, more settled region.

The End of the Dragon's Reign and the Battle's Aftermath

The peace was made possible by the death of Smaug, who had for centuries laid waste to the region. After the dragon's fall, the goblin army, which had mustered in secret and marched from the North under Bolg, was shattered in the Battle of Five Armies. Songs recorded that three parts of the goblin warriors of the North perished on that day, and the mountains had peace for many a year. The victory was assured before nightfall, and the pursuit of the fleeing goblins drove many into the Running River or into the marshes about the Forest River, where the greater part of the last fugitives perished. Those who reached the Wood-elves' realm were slain or drawn in to die deep in the trackless dark of Mirkwood. The Wargs vanished from the woods, so that men went abroad without fear.

The Restoration of Dale and the Lonely Mountain

With the dragon dead and the goblins overthrown, the lands began to heal. Dain son of Nain became King under the Mountain, and in time many other dwarves gathered to his throne in the ancient halls. Bard rebuilt the town in Dale, and men gathered to him from the Lake and from South and West. All the valley became tilled again and rich, and the desolation was now filled with birds and blossoms in spring and fruit and feasting in autumn. Lake-town was refounded and was more prosperous than ever, and much wealth went up and down the Running River. Friendship grew in those parts between elves and dwarves and men.

The Transformation of the Wild

The peace extended far beyond the Mountain. Beorn became a great chief in the regions between the mountains and the wood, ruling a wide land. It was said that for many generations the men of his line had the power of taking bear's shape, and most were in heart like Beorn. In their day the last goblins were hunted from the Misty Mountains, and a new peace came over the Edge of the Wild. The goblins of the Misty Mountains were now few and terrified, hidden in the deepest holes they could find. The Forest itself grew more wholesome after the White Council drove the Necromancer from his dark hold in the south of Mirkwood, as Gandalf reported to Elrond.

Bilbo's Personal Peace

For Bilbo Baggins, the New Peace meant a return to his hobbit-hole at Bag-End, though he was no longer quite respectable. He remained an elf-friend and had the honour of dwarves, wizards, and all such folk as ever passed that way. He was content, and the sound of the kettle on his hearth was ever after more musical than it had been even in the quiet days before the Unexpected Party. He took to writing poetry and visiting the elves, and though few believed any of his tales, he remained very happy to the end of his days, and those were extraordinarily long.