The story begins in a conventional London nursery where the Darling children are visited by Peter Pan, a magical boy who refuses to grow up and lives in a mystical place called Neverland. Lured by the promise of flight and adventure, Wendy, John, and Michael follow Peter to an island populated by fairies, redskins, lost boys, and a ruthless band of pirates led by the villainous Captain Hook. Once on the island, Wendy assumes a maternal role for the motherless lost boys, creating a domestic routine that contrasts sharply with the dangerous exploits of the island. However, the children soon face grave perils, culminating in a dramatic conflict where Hook captures the children and attempts to poison Peter.
Peter survives with the help of Tinker Bell, whose life is saved when children around the world express their belief in fairies. In the ultimate showdown aboard the pirate ship, Peter defeats Captain Hook, who meets his end in the jaws of a relentless crocodile. Following the victory, Wendy and her brothers choose to return to their grieving parents in London, recognizing the permanence of home. Years later, Wendy grows up and has a daughter of her own, but Peter Pan remains unchanged, returning periodically to claim successive generations for his magical world.