Plot
In the early 20th century, Peter Pan (Jeremy Sumpter) visits London and becomes enthralled by the stories that Wendy Darling (Rachel Hurd-Wood) tells to her brothers. Wendy asks to visit Never Land and Peter invites her to be the "mother" to his gang of Lost Boys (most of whom are English accented). Before leaving, she asks to bring her brothers John (Harry Newell) and Michael (Freddie Popplewell), and Peter teaches them all to fly with him.
Out of jealousy, Tinker Bell (Ludivine Sagnier) tricks the Lost Boys into shooting Wendy as she approaches the island, but Wendy survives and the boys ask her to be their mother and tell them stories. Two of the Lost Boys reveal to Peter that it was actually Tinkerbell who tricked them, and enraged by this, he breaks his friendship with her. Meanwhile, the Indian princess Tiger Lily (Carsen Gray) captures John and Michael by accident, just before Captain Hook (Jason Isaacs) comes through the forest looking for the boys. Captain Hook captures Tiger Lily, John and Michael, and holds them as bait for Peter. All three of them are gagged and left hanging from a rock to drown as the tide rises. Peter and Hook engage in a duel and Hook manages to gain the upper hand when he disarms Peter and captures him momentarily. When Hook is about to kill Peter, the crocodile that ate Hook's hand appears, allowing Peter, Wendy, her brothers, and Tiger Lily to escape. The Crocodile desperately tries to eat Hook by snapping his jaws around him, but he makes a narrow escape before the Crocodile can swallow him alive.
That night, Peter shows Wendy the fairies' home "Pixie Hollow" and together they share a romantic "fairy dance." While Hook spies on them, he is distressed that Peter has "found himself a Wendy." Peter reminds Wendy that they are just pretending to be a couple, and Wendy confronts Peter about his feelings about love. Peter becomes upset with her, and tells her to go home if she's not happy. Wendy, hurt, escapes to her little house. Peter returns to the Darling house, and seeing that Wendy's mother is still waiting for her children to come home, he attempts to shut the window to prevent her return to them. But, after a struggle, Wendy's parents manage to reopen the window, refusing to let it be closed.
Hook later finds Wendy and has her carried to his ship, the Jolly Roger. There, he entices her with a job telling stories to the crew, then sends a spy to follow her to the Lost Boys' underground lair. The next day, after Peter hears of a new pirate, Wendy admits she was asked to serve as a crewman, which brings her to realize that they have forgotten their parents and must return home. Later, the pirates kidnap the boys as they are leaving the tree to escort the Darlings home. Wendy finds out, but she is bound and gagged before she can cry out for help. Since Hook is unable to reach Peter from the ledge he is on, he leaves poison for him to drink when he wakes up. Tink stops him, poisoning herself in the process; Peter reaches out to children sleeping around the world, the Darlings, and even the pirates to sustain her with their belief in fairies.
Peter and Tink save Wendy and the boys from walking the plank, and they all fight against the pirates. Hook sprinkles himself with Tink's fairy dust, and duels Peter in the air, weakening him with taunts about Wendy abandoning him and eventually forgetting about him when she grows up. Peter falls, unable to fight with those thoughts and gives in to inevitable death. But with a "thimble" (a hidden kiss) from Wendy, Peter recovers and re-engages Hook, who loses his confidence and his altitude above the water, and is swallowed by the crocodile. Wendy decides that she belongs back home, and returns to London with her brothers and the Lost Boys. Peter, now with more respect for Wendy and her decision to return to London, promises to never forget about her and to return to hear stories before heading back with Tinker Bell to Neverland. However according to Wendy, she was not to see Peter Pan again, and told his stories to her children and they will tell it to their children.
