Throughout The Lord of the Rings, every member of the Fellowship serves their purpose and helps defeat Sauron. But there's no denying that Gandalf was among the most important of them, as despite his brief disappearance at the end of Fellowship of the Ring, his actions helped secure the future of Middle-earth. However, after all was said and done, what happened to Gandalf?
When Gandalf appears at Bilbo's 111th birthday party, he has already been deep into his investigation against Sauron. He pushed Sauron out of Mirkwood during the events of The Hobbit and was well aware that the Dark Lord was rebuilding strength in Mordor. And if not for Gandalf, the true nature of Bilbo's ring would have never been noticed, and the story would've come to a swift and tragic end. So, after everything the Wizard did, it seems fitting that he took time to relax after The Lord of the Rings.
Gandalf Took a Much-Needed Rest After Lord of the Rings
Once Sauron was defeated, his mark on Middle-earth was still felt by many. Most major characters in the story had to get to work rebuilding and restoring kingdoms and villages to what they were in their prime. But Gandalf knew his purpose on Middle-earth was complete, so he decided to take things easy for the remainder of his days.
Shortly after the war, Gandalf attended the coronation of Aragorn and placed the crown upon the king's head. And by saying, "Now come the days of the king," it marked the beginning of a new age. Then, after Aragorn was named king and married Arwen, Gandalf escorted each member of the Fellowship back home to bid them farewell. Even at the Shire, which had been burned and captured by a defeated Saruman, Gandalf decided to walk away and let the Hobbits confront the problem alone.
Lord of the Rings' Gandalf Left for the Gray Havens
Upon saying goodbyes to the Hobbits, Gandalf left to have a "long talk" with an old friend -- Tom Bombadil. While he never appeared in Peter Jackson's Lord of the Rings trilogy, this mysterious character was one of the oldest and most powerful in Middle-earth. And it's assumed that Gandalf stayed with him for the next few years, as he disappeared for some time.
Finally, Gandalf knew it was time to leave Middle-earth for good. He was placed on the world to defeat Sauron, but with the Dark Lord gone and the Elves leaving for the Gray Havens, he could return to the life he once had. With Frodo, Bilbo and Elrond at his side, Gandalf sailed into the West and was never heard from again. And for the remainder of his days, he was known as Olorin.
With most of the Fellowship working hard to rebuild what was broken, Gandalf's rest could be seen as laziness. Yet, he had worked the hardest against Sauron, hunting the villain for hundreds of years while most stayed ignorant of his return. Middle-earth was also never Gandalf's home, so, with everything done, the years of rest and comfort were a fitting end for the Wizard.