In a prologue, the Old Man of Wandering Mountain reads from a large book, begins to record a prophecy of a day when "The Nasty" will arrive in Fantasia, and describes the savior of "Extraordinary Courage".
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This time around Edmund and Lucy Pevensie, along with their pesky cousin Eustace Scrubb find themselves swallowed into a painting and on to a fantastic Narnian ship headed for the very edges of the world.
While hiding from bullies in his school's attic, a young boy discovers the extraordinary land of Fantasia, through a magical book called The Neverending Story. The book tells the tale of Atreyu, a young warrior who, with the help of a luck dragon named Falkor, must save Fantasia from the destruction of The Nothing.
Living a bleak existence at a London orphanage, 12-year-old Peter finds himself whisked away to the fantastical world of Neverland. Adventure awaits as he meets new friend James Hook and the warrior Tiger Lily. They must band together to save Neverland from the ruthless pirate Blackbeard. Along the way, the rebellious and mischievous boy discovers his true destiny, becoming the hero forever known as Peter Pan.
In 1940, the world is besieged by World War II. Wendy, all grown up, has two children; including Jane, who does not believe Wendy's stories about Peter Pan.
In stifling Edwardian London, Wendy Darling mesmerizes her brothers every night with bedtime tales of swordplay, swashbuckling and the fearsome Captain Hook. But the children become the heroes of an even greater story, when Peter Pan flies into their nursery one night and leads them over moonlit rooftops through a galaxy of stars and to the lush jungles of Neverland.
The boy who wasn't supposed to grow up—Peter Pan—does just that, becoming a soulless corporate lawyer whose workaholism could cost him his wife and kids. During his trip to see Granny Wendy in London, the vengeful Capt. Hook kidnaps Peter's kids and forces Peter to return to Neverland.