In J.R.R. Tolkien's "The Hobbit," the Misty Mountains lie on the other side of Mirkwood Forest. The Misty Mountains are a vast mountain range that separates the lands of Eriador and Rhovanion in Middle-earth. This geographical feature presents a significant obstacle for Bilbo Baggins and the company of dwarves on their journey to the Lonely Mountain.
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I depends to which forest you are referring. If you mean Mirkwood, then the other side of the forest is where the Long Lake, the River Running, the Desolation of Smaug and the Lonely Mountain are.
Although the Elves and Dwarfs hate each other, they are fighting for the same "side".
Ravenhill
The sides were fairly equal with no one winning or losing and so when the eagles arrived, they made that side that much stronger than the other, and they won the battle.
They cross it in a boat. Bilbo saw it on the far side of the river and they were able to snag it with a hook and pull it across.
A hobbit-hole, also called smial, is a from of housing used by the hobbits in J.R.R. Tolkien's fiction. It is basically an underground house built in hills, consisting of a long hallway with the rooms branching off to both sides; usually the hallway runs parallel to the shape of the hill so that the rooms on one side of the hallway can have windows. Further characteristics of hobbit architecture are perfectly round doors and windows, tube shaped halls, and building even-floored (meaning no housings with multiple floors/stories). Most hobbits do not live in hobbit-holes but in "normal" houses, which have the same architectural characteristics as the hobbit-holes mentioned above.