In this chapter, Frodo Baggins prepares to leave the Shire, having decided to embark on a journey to destroy the One Ring. With the weight of his responsibility bearing down on him, he is joined by his loyal friends, Samwise Gamgee and Peregrin Took (Pippin), as they set out on their adventure. The atmosphere is filled with a mix of excitement and anxiety as they leave the familiar comforts of home behind.

As they travel, the trio is filled with a sense of adventure but soon realizes that the world outside the Shire is fraught with danger. Their journey begins innocently enough; they take a path toward the woods, discussing the lore of the land and the legends of old. However, unease quickly sets in as they hear strange noises and become aware of shadowy figures lurking nearby, hinting at the presence of malevolent forces.

Their first significant encounter occurs when they are nearly spotted by a group of Black Riders, also known as Ringwraiths, who are searching for the Ring. The tension escalates as the hobbits hide and try to remain undetected. This moment serves to underline the peril that Frodo faces; their peaceful lives in the Shire seem worlds apart from the grim reality of their quest.

The chapter emphasizes the theme of friendship, as Frodo draws strength from Sam and Pippin's companionship. Sam, ever the loyal friend, provides comic relief and a sense of comfort amidst the tension. Pippin, with his curious nature, often lightens the mood, though his impulsivity sometimes leads them into trouble.

As they make their way deeper into unknown territory, the hobbits encounter challenges that test their resolve. They must navigate through dense foliage and unfamiliar paths, facing the overwhelming sense of being watched. The chapter concludes with a growing sense of foreboding, as it becomes clear that their journey will not be an easy one, and the threat of the Ringwraiths looms over them, heralding the dark challenges that lie ahead.

Overall, "Three is Company" serves as a pivotal moment in the narrative, transitioning the characters from the safety of the Shire into the broader, more dangerous world of Middle-earth, while establishing the bond of camaraderie that will be essential for their survival.