[Kili laughs brightly and promptly pulls the hobbit into a tight hug, lifting him off the ground slightly.]

I'm fine, all healed, see? [He gestures to his leg. There's not even a slight limp or anything.] Not a clue how, though.

[Bilbo's question makes him hesitate, his smile fading as he looks around, as though expecting to see Fili just pop out of nowhere.] Well aye but...I haven't seen them. But all of this... [He gestures vaguely around them.]

It has to be a dream, doesn't it?