Ravenhill was an outlying hill beneath the height of Erebor, the Lonely Mountain. It stood at the end of a ridge of high ground extending southwards from the mountain itself, overlooking the River Running and the valley of Dale.
The Dwarves of Erebor built a guard-post on the hill, about five hours march from the Front Gate to the Mountain, and above its chamber for many years lived friendly intelligent ravens, like Carc. It was they, and the ravens of hill, that gave it its name.
In T.A. 2941 Thorin and Company made their first camp north of the hill as they reached Erebor. Much later the Company returned to Ravenhill when they made their escape from the Mountain. After spending one night in the rock chamber on the hill the thrush that they had last seen on the "Doorstep" came to them. When Balin wished that it was a raven the thrush flew off and brought back Roäc, who gave them the news of the death of Smaug and the approach of the Elves and Lake-men.
In the Battle of Five Armies the Elves, Gandalf, and Bilbo Baggins took a stand on Ravenhill. Knocked senseless, Bilbo woke up in this same place the next morning (having not been found since he had been wearing the Ring when he was struck down).