The first challenge came in the form of three very large trolls. The dwarves were all captured and would have been goners except Gandalf showed up and saved them. While heading through the mountains they encountered a storm and giants, either of which could have done them in. They took shelter in a cave that was actually the front door to an orc-hold*. When the Great Goblin saw the sword Orcrist ("Orc-cleaver", or simply "biter") he was ready to smash and rend them all. Once again Gandalf is the savior and beheads the Great Goblin. After they got out of the orc-hold they soon ran into wargs. This time Gandalf was caught also and the Great eagles had to save him, along with the rest of the company.

*Note-Goblin is a slang term for orc, used by the Sylvan elves.