
In Edward's London, George and Mary Darling's preparations for a party are disrupted by the behavior of their sons, John and Michael, who play the story of Peter Pan told by their older sister, Wendy. An upset George asks Wendy to stop her story and get out of kindergarten, because "hurry or later, people have to grow up". Later that night, Peter himself arrives at the nursery to find his lost shadow. She persuades Wendy to come to Never Land, where she will never grow up, and she and her children fly there with the help of the fairy Tinker Bell.
A pirate ship docked in Never Land, led by Captain Hook and his first mate, Mr. Smee. Hook wants revenge on Peter for cutting off his hand, but is afraid of the crocodile eating his hand, knowing that he wants to eat the rest of his body. When Pan and the Darlings arrive, Hook shoots them with cannons, and Peter sends the Darlings to safety while he lures them to the pirates. Tinker Bell, envious of Pan's concern for Wendy, convinces the Lost Boys that Pan has ordered them to shoot down Wendy. Tinker Bell's betrayal is soon discovered, and Peter expels him. John and Michael set out with the Lost Boys to find the island's natives; however, the natives capture the group, believing that they are responsible for taking the chief's daughter, Tiger Lily.
Meanwhile, Peter invites Wendy to meet the mermaid, who runs away in fear when Hook arrives on the scene. Peter and Wendy see that Hook and Smee have captured Tiger Lily, to force her to reveal Peter's hideout. Peter frees Tiger Lily and returns her to the Chief, and the tribe respects Peter. Meanwhile, Hook exploits Tinker Bell's jealousy towards Wendy, tricking the fairies into uncovering Peter's secret hideout.
Wendy and her brother are finally homesick and planning to return to London. They invite Peter and the Lost Boys to join them and are adopted by the Darlings. The Lost Boys agree, but Peter refuses to grow up. The pirates wait, and capture the Lost Boys and Darlings as they exit the lair, leaving a time bomb to kill Peter. Tinker Bell learns the storyline, just in time to snatch a bomb from Peter when it explodes.
Peter rescues Tinker Bell from the rubble, and together they rescue Wendy, confront the pirates, and release the children before they can walk on board. Peter engages Hook in combat as the boys fight the crew, and defeats him. Hook fell into the sea and swam away, chased by a crocodile. Peter leads the abandoned ship and, aided by the dust of the fairy Tinker Bell, flies it to London with the children on board.
George and Mary Darling return home and find Wendy sleeping in the open window of the nursery. Wendy awakens and passionately recounts their adventures. The parents looked out the window and saw something that looked like a pirate ship in the clouds. George, who had softened his position on Wendy living in the nursery, recognized the ship from his childhood.
Pleasure in Imagination: Peter Pan teaches us about the power of imagination and the ability to stay young at heart, even as we grow up.
The Importance of Adventure: This story celebrates the value of adventure and courage in exploring the unknown world.
Friendship and Loyalty: The relationship between Peter Pan, Wendy, Tinker Bell, and Darling's children emphasizes the importance of friendship and loyalty.
The Struggle Against Evil: The fight between Peter Pan and Captain Hook depicts the struggle between good and evil.
Accepting Change: Peter Pan represents the desire to stay young forever, but the story also teaches that change is a natural part of life that must be accepted.