Peter Pan visits the nursery of the Darling children, Wendy, John and Michael, every night when they are sleeping. One night they wake up and Peter teaches them to fly. Together they fly off to Never-Never Land where they find the Lost Boys, mermaids, Indians and pirates. However, the leader of the pirates, the terrible Captain Hook, wants to kill Peter and capture the children.

Can they defeat him and return home to their parents in London?