The Hobbit: Summary I. Setting: The whole story takes place in the Land of Middle Earth, in a time not specified because it's a fantasy setting, but compared to human time it must have been the Middle Ages. Influence of the setting on the story: The setting plays a major role in the development of the story. If if wasn't for the setting, the story would have been way too short. It was the setting that set the mood and the tone for the actions that took place in the story. J.R.R. Tolken's descriptions of each place helps the reader understand the history of the area and what the main character, Bilbo Baggins, thought and felt throughout the story. These places were the m