The narrative opens in the Kensington Gardens of London, describing the grand walks, the Round Pond, and the complex social hierarchy of the children and their nurses who frequent the park. The author follows the daily routines, games, and imaginative play that occupy the park visitors before the evening lock-out time empties the grounds. From this vivid backdrop emerges Peter Pan, a human infant who flew away from his home at one week old, forgetting his human nature and believing himself to be a bird. Landing on an island in the Serpentine, Peter is taken in by old Solomon Caw and the birds, who teach him bird-lore and the secret of having a glad heart.
Though he can no longer fly naturally, Peter constructs a remarkable boat out of a thrush's nest and a bank-note, successfully sailing across the water to enter the Gardens after hours. There he encounters the secretive and capricious fairies, serving as their orchestra for grand midnight balls and eventually receiving the chance to visit his human mother. His brief return home ends in tragedy when he finds the nursery window barred and his place taken by another child, leaving him permanently exiled to the wild freedom of the park.
The later chapters introduce Maimie Mannering, another adventurous child who becomes accidentally locked in the Gardens after dark. Maimie witnesses the hidden fairy kingdom in motion, attends the grand ball, and receives a wondrous little house built specially for her by the fairy folk. Through her interactions with Peter, a poignant friendship develops, marked by misunderstandings of human customs, kisses represented by thimbles, and debates over whether to live among the birds. Though Maimie ultimately returns to her human family and the security of the nursery, Peter remains in the park. He continues to ride his magical goat, play his reed pipe, and watch over any lost children he encounters under the trees.
