The Fallohides were one of the three original divisions of Hobbit-kind, along with the Harfoots and Stoors; they were the least numerous of the three branches, originally dwelling on the upper reaches of the River Anduin. It seems likely that they mixed with ancestors of the Rohirrim, as the Northmen also dwelt in this region. (This may be the origin of the legend of the holbytlan found in Rohan.)
Following the first millennium of the Third Age, the Fallohides deserted their homes in the north (TA 1150) and crossed the mountains to the north of Rivendell. They travelled slowly down the course of the River Horwell, and westward across Eriador, eventually settling in the region around Bree (TA 1300). Their adventurous nature led them to become natural leaders of the Hobbits already settled there. Around this time, the three branches of Hobbits were likely to have begun mixing freely with one another for the first time.
Three hundred years later (TA 1601), brothers Marcho and Blanco, both Fallohides, travelled westward from Bree and crossed the Bridge of Stonebows, settling in the empty land they found there. It lay in the realm of King Argeleb II of Arthedain, who granted them the land, which later became known as the Shire.
As the three branches of Hobbit-kind continued to mix with one another in the Shire, the three distinct branches began to gradually disappear. During the War of the Ring, the Fallohides were still well represented by the families of the Tooks and Brandybucks.
Fallohides were taller and slimmer than other Hobbits; some grew to more than four feet in height. Their skin and hair tended to be fair, and none of the Fallohides ever grew beards.
Unlike the Stoors or Harfoots, the Fallohides were more open to outside influence, and as such were friendlier with the other races of Middle-earth, especially the Elves. They were skilled in both speech and song, perhaps due to their close relationship with the Elves.
Hunting was a tradition in Fallohidish culture, and though they were bolder and more inquisitive than the other branches of Hobbit-kind, they were less gifted in the areas of farming and agriculture.