Rabbits are found wandering in many areas of Middle-Earth. They are mostly harmless critters that scurry away to safety as they are approached.
Odd sightings have been reported in Wildermore. Rabbits have been spied in several places siting on a bear skin. The reason for this is as yet unknown. Some think there is a kind sole placing the bearskins around to provide a warm and snuggly place for the rabbit to live. Others think the rabbits acquired the bear skins directly from the Bears themselves.