Bilbo Baggins lives in the Shire in J.R.R. Tolkien’s The Hobbit.
The Shire is a settled region of northwestern Middle-earth inhabited mainly by Hobbits. Bilbo’s home is Bag End, a comfortable smial built into a hill in Hobbiton. His quiet routine is interrupted when Gandalf and thirteen Dwarves arrive and invite him to join their journey to the Lonely Mountain.
Tolkien presents the Shire as an agrarian society with villages, gardens, inns, family networks, and strong attachment to tradition. Its peaceful character provides a sharp contrast with the dangers Bilbo later encounters. The Shire is not the name of the entire continent or world; Middle-earth is the broader setting, while the Shire is one particular region within it.