Plot
In Edwardian London, Wendy Darling spends her last night at home with her parents and her two younger brothers, John and Michael, before leaving for boarding school the next day. She is unhappy with her departure and feels she does not want to grow up. Having heard Wendy's wish, a free-spirited boy named Peter Pan arrives to take her to Neverland where she will never have to grow up. With the help of his companion, fairy Tinker Bell, Wendy, John, and Michael fly to Neverland.
Upon arriving, they are attacked by a ship of pirates, led by Captain Hook, who wants revenge on Peter for cutting off his right hand and throwing it to a crocodile. Wendy becomes separated from Peter and her brothers and meets Tiger Lily and the Eight Lost Children (four boys & four girls). She witnesses the pirates capturing John and Michael to drown them at Skull Rock. Peter fights Hook, while Wendy, Tiger Lily, and the Lost Children save John and Michael. Hook and the pirates are chased away by the crocodile. Peter is proud of his victory, but is scolded by Wendy for his recklessness, and the Lost Children tell her that he has a complicated history with Hook.
Retreating to Peter's hideout, Wendy sings a lullaby to the Lost Children, which accidentally reveals their location to the pirates. Wendy learns from Peter that Hook was once "the very first Lost Boy" and his best friend James, until he left Neverland and grew up to be a pirate. Hook's crew captures the Lost Children, Tinker Bell and the Darling children, while Hook ambushes Peter, who seemingly falls to his death. Instead of feeling joy, however, Hook feels empty and unsatisfied. He reveals to Wendy that the reason he left Neverland was because he missed his mother and wanted to find her. Eventually, he got lost at sea and was rescued by his first mate, Mr. Smee, and the pirates who raised him. When he returned to Neverland, Peter could not accept how much he had changed, and the two became arch-enemies.
While Tiger Lily finds and nurses Peter back to health, Hook forces Wendy to walk the plank, but she flies away with Tinker Bell's pixie dust and the happy thought of wanting to grow up. Tinker Bell flies the ship into the air with pixie dust, helping the Lost Children break free and battle the pirates. Peter arrives to confront Hook, and after a long duel, finally apologizes to him for being a bad friend, but Hook does not want their rivalry to end. When Wendy turns the ship on its back, causing the pirates to fall down into the sea, Peter attempts to save Hook, encouraging him to fly, but without happy thoughts, he falls into the sea while losing his hook. Afterward, the Lost Children decide they all want a real home, so they fly back to London on the ship with the Darlings.
Arriving home, Wendy introduces the Lost Children to her parents. Peter reveals the Darlings' house was his old home until one day he ran away after an argument with his mother, and never came back. Wendy suggests he stay, but Peter feels he is not ready to grow up. He bids farewell to Wendy and the Lost Children, and returns to Neverland with Tinker Bell.
Back in Neverland, Hook and Smee are revealed to have survived the fall. As they hang on to floating obstacles in the sea, Hook sees Peter returning on the ship and smiles civilly.
