Hobbits are a fictional race in the Middle-earth world invented by J. R. R. Tolkien, also often called halflings.
They appeared in the books The Hobbit and The Lord of the Rings. Several important main characters in those books are hobbits, such as Bilbo Baggins and Frodo Baggins.
Hobbits (or similar beings) have become very popular and are now often used in fantasy fiction and (video) games.