Wendy is all grown up, with children of her own, and as the blitzkrieg rages, she calms them with tales of Peter Pan. Wendy's stubborn 12-year-old daughter, Jane, has no patience for such nonsense until Capt. Hook uses the girl as a pawn in capturing his arch-rival. Peter Pan, Tinker Bell, and the Lost Boys come to her aid; however, even they cannot make Jane a believer in the magic of imagination. Unless she believes, she cannot fly, and there is no other way for her to return home.
