According to Bard the Bowman, the Black Arrow had originated in the Lonely Mountain and had been ed down to him from his father and grandfather of the line of Girion. It was magical for him and whenever he shot it, he always recovered it.

When in T.A. 2941 the dragon Smaug attacked Lake-town, after being disturbed by Thorin and Company in the Lonely Mountain, the Black Arrow was the last arrow left in Bard's quiver.

Bard fired the arrow through a bare patch in the armor on Smaug's underbelly, described to him by the Thrush. The arrow penetrated Smaug's heart, killing the dragon immediately.