The Darling family children, Wendy, Michael and John love to hear stories, especially when told by older sister Wendy. Their favorite is the adventures of Peter Pan, the little boy who never grew up. One night, much to everyone's surprise, Peter flies into the Darling nursery, in search of his shadow, which Wendy had previously captured. Sprinkling the kids with magic pixie dust, Peter flies off to Never-Never Land with Wendy, Michael and John following behind. Once in Peter's domain, the children are terrorized by Captain Hook, who intends to capture Peter and do away with him.