Twenty years have passed since the events chronicled in Peter Pan took place. The Lost Boys have grown up, little Michael has been killed in WWI, and the rest have careers and families. But dreams are leaking out of the Neverland, disturbing their sleep, and leaving all-too-real souvenirs. Gathering together with Wendy, they decide they must become children again and fly back to Neverland to find out what is wrong.
Once there they discover a land that is deteriorating, but they forget their mission. Finding the derelict "Jolly Roger" and a treasure map on board, they join Peter on an expedition to find Hook's treasure. They are joined by the mysterious Ravello, a circus-master, who becomes Peter's butler. But in Neverland, adults can only mean trouble.