Every night, in a London home, Wendy, John, and Michael Darling are told a bedtime story. Peter Pan likes to fly to their window and listen as well. One night, he loses his shadow at the Darling's and comes back to find it. He and Tinkerbell find it and Wendy helps sew it back on. He tells Wendy of his life in Neverland with the Lost Boys all of whom will never grow up. Peter Pan teaches Wendy and her brothers to fly and they all go off to Neverland where they meet the evil Captain Hook and his pirate gang, Tiger Lily and her Indian tribe, and the Mermaids of the Lagoon. One day, Capt. Hook captures the Darling children and Peter and Tinkerbell have to save them. After they escape, Wendy and her brothers decide to go back home and Peter promises to visit them.