The Hobbit is a children’s fantasy novel written by a widely respected English linguist and writer John Ronald Reuel Tolkien. Tolkien, famous for his vigorous defence of fantastic literature, wrote a poignant chronicle of a hobbit Bilbo Baggins set in Middle-earth in the years 2941 to 2942 of the Third Age. Although primarily a fairy tale, the book is both complex and sophisticated when all of its intricacies are taken into consideration. The novel depicts rises and falls of Bilbo Baggins who embarks on an unlikely adventure of his life with Gandalf the wizard and a company of thirteen Dwarves. The apprehensive home-loving hobbit agrees to participate in a brave feat because he is motivated by the promised prize – a share of the treasure guarded by Smaug the dragon. The unexpected journey takes the inexperienced Bilbo into the wilderness of pristine woods, impassable mountains, and unexplored caves with dangerous Wargs, giant spiders, deadly Goblins and Orcs, Eagles, Trolls, and a Gollum. Wandering through a maze of danger Bilbo Baggins finds his deeply rooted courage, learns the true extent of his bravery and shows an enviable aptitude for burglary. His story is told in a form of an episodic quest in which the central themes are forms of heroism and personal growth. This paper explores the idea of heroism through the characters in the story, and examines what it means to be a literary and a hobbit hero.