Fantastic adventures await Wendy and her brothers when Peter Pan, the hero of their stories, whisks them away to the magical world of Never Land. After following Peter and his feisty sidekick Tinker Bell past the second star to the right and straight on 'til morning, they explore the island and Peter's secret hideout with the rambunctious Lost Boys, and leap into high-flying battles with swashbuckling pirates and the infamous Captain Hook.
Several decades after the events of the first film, Wendy is now grown up and married to a man named Edward and has two children, Jane and Daniel "Danny". With World War II raging and London being bombed by the Luftwaffe, Edward leaves to fight, leaving Wendy to take care of the children. Jane refuses to believe in stories about Peter Pan and refers to them as "childish nonsense", which leads to an argument with her mother and brother one night (after Wendy is informed and tells Jane that she and Danny, along with the other children in London, are being Evacuations of civilians in Britain during World War II to the countryside for safekeeping due to the German bombing of the city). Later that night, Captain Hook and his crew, sailing through the sky on their pixie-dust enchanted ship, kidnap Jane, mistaking her for Wendy, evade an air raid alert and escape back to Neverland.