Book II, Chapter 6: "Lothlórien" Aragorn, using the leaves of athelas he gathered at Weathertop, tends to Sam and Frodo's wounds. Frodo reveals his mithril coat, to Gimli's astonishment. The Fellowship journeys on to the woods of Lothlórien, the fairest of all Elvish dwellings, where is, according to Legolas, "a secret power . . . that holds evil from the land." Boromir is suspicious of entering Lothlórien, because the Men of Gondor do not speak well of it; Aragorn attempts to reassure him that such fear is unwarranted.

Haldir the Elf meets Legolas, Frodo, and Sam. The Elves of Lothlórien have had word of the Fellowship's quest from Elrond's messengers. Although Haldir is willing to allow most of the company passage through Lothlórien, he refuses entrance to Gimli, as the Elves "have not had dealings with the Dwarves since the Dark Days." At Legolas' insistence, Haldir agrees, on the condition that Gimli be blindfolded. The Hobbits spend that night in the trees with the Elves, since the ground is not safe. Frodo hears something climbing his tree, and he again sees the two pale eyes he had seen in Moria. Again, while not named at this point in the text, readers are being given a glimpse of Gollum. That same night, a company of Orcs enters Lothlórien; Haldir assures the Hobbits that none of the Orcs will leave the woods alive.

As the Fellowship moves deeper into Lothlórien, the time arrives for Gimli to be blindfolded. At Gimli's refusal-for the agreement to blindfold him had been made when he was not present-Aragorn decides that the whole Fellowship should be blindfolded. During their journey, word arrives from the Lord and Lady of Lothlórien, allowing all of the Fellowship to walk freely, even Gimli.