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In the fiction of J. R. R. Tolkien, Galadriel, or The Lady of the Woods, was an Elf-queen of Middle-earth, ruler of the land of Lothlórien along with her husband Celeborn. She was originally named Artanis ("noble woman") and Nerwen ("man-maiden", referring of her height and strength). Galadriel is the Sindarinized version of Telerin Quenya Alatáriel, the name given her by her lover Celeborn, meaning "maiden crowned with a garland of bright radiance", which referred to her hair. The Elves of Tirion said it captured the radiance of the Two Trees Laurelin and Telperion themselves. It was greatly admired by Fëanor and may have inspired him to create the Silmarils.
Spoiler warning: Plot or ending details follow.
Galadriel was the only daughter and youngest child of Finarfin, prince of the Ñoldor and of Eärwen, who was remotely related to Lúthien. Her elder brothers were Finrod Felagund, Angrod and Aegnor. She was born in Valinor during the Years of the Trees. During the great perturbations at the end of that period, she came to Beleriand with most of the Ñoldor. She lived nominally with one of her brothers, but spent much time at the court of Thingol and Melian in Menegroth, where she fell in love with, and later married, the noble Celeborn, kinsman of Thingol.
Both Celeborn and Galadriel survived the War of Wrath, and travelled first to Lindon, under Gil-galad. Later they moved eastward, and established the realm of Eregion or Hollin. At this time they made contact with a Nandorin settlement in the valley of the Anduin, the later Lothlórien. Later they removed from Eregion by way of the mines of Khazad-dum, and became lords of Lothlórien. They had a daugher, Celebrían, who later married Elrond Half-elven of Rivendell.
During the Second Age, when the Rings of Power were forged, Galadriel was mistrusting of Annatar, the loremaster who guided Celebrimbor and the other Ñoldor of Eregion. It later turned out that this mistrust was justified, as he was finally revealed to be Sauron. When Eregion was attacked, Galadriel was entrusted with one of the Three Rings of the Elves. Her Ring was Nenya, the Ring of Water. Conscious of Sauron's power, and wishing to thwart it, she did not use the Ring as long as the One Ring was in Sauron's hands. However, during the Third Age, when the One Ring was lost, she put it to use. Its power might have been related to the Mirror of Galadriel, a large bowl of water in which visions of the future may be seen.
She hosted the Fellowship of the Ring after their escape from Moria. When she heard of their arrival in the woods, she sent word to the elf guards to remove their blindfolds. When she met them in her tree dwelling at Caras Galadhon, she gave each member of the fellowship a searching look, testing their resolve (Boromir regarded this test as a temptation). She, in turn, was tested when Frodo Baggins later offered to place the One Ring in her keeping. Knowing that its corrupting influence would make her "great and terrible", she declared, "I pass the test" and refused the Ring, accepting her fate of diminishing (as the time of the dominion of Men had come) and returning to Valinor. When the Fellowship of the Ring had to leave, she gave each member of the fellowship a gift and an elven cloak, and outfit the party with three boats and much waybread, or lembas.
She passed over the Great Sea in the early years of the Fourth Age (on the same ship as Elrond, Gandalf and the Ringbearers Bilbo and Frodo Baggins), leaving her husband Celeborn behind until he finally set sail as well.
Much of Galadriel's story is confusing, and there are several distinct tales told about her, collected in the Unfinished Tales. It seems that Tolkien's final intent was to have Galadriel meet Celeborn in Valinor, and together they desired to leave for Middle-earth even before the Rebellion of the Ñoldor. However, because they left at the same time (and without permission), they also fell under the ban.
After the War of Wrath Galadriel refused the Pardon of the Valar out of pride, and therefore remained under the Ban. It is her refusal of the One Ring that lifts the ban, and that is why she is finally allowed to leave in the end.
In Peter Jackson's movie trilogy beginning with The Lord of the Rings: The Fellowship of the Ring, Galadriel is played by Cate Blanchett. In the movie adaptation of The Fellowship of the Ring, Galadriel narrates the Prologue to the trilogy, explaining the creation of the Rings of Power and the War of the Last Alliance. Earlier plans considered were to have either Frodo or Gandalf narrate the Prologue, but this was dropped: Frodo wasn't alive until thousands of years after these events happened, and although Gandalf was alive, he was not present in Middle-earth at the time; the Wizards came some one thousand years after the Prologue ends. Thus Galadriel narrates the Prologue, because she had first-hand accounts of this history and actively participated in its events.