It is many years after the events of the first Peter Pan movie and Wendy is telling her own children tales of Peter Pan as the bombs of World War II fall on London. Wendy's daughter, Jane, is much too practical to believe in fairies or boys who can fly--even after she is kidnapped by Captain Hook and taken back to Neverland. Peter Pan, Tinkerbell and the Lost Boys come to her rescue but, without the belief in the magic of imagination, Jane can't fly and can't leave Neverland. Worse still, the fact that Jane doesn't believe in fairies causes Tinkerbell to begin to slowly fade away. To save Tinkerbell and get Jane home, Peter must show Jane that with a little faith--and a little pixie dust--anything is possible.