While playing with two mermaids at the lagoon, Peter innocently proclaims Wendy to be the most beautiful being in Neverland. The vain mermaids are so jealous that they kidnap Wendy and transform her into a mermaid. Unfortunately, they do not give her the ability to breathe underwater. Can Peter save Wendy before her air bubble runs out?

Tinkerbell takes Michael to a fair on Small Monday Island, but the pirates have also decided to go.

The Lost Boys build a sub to explore the sea while Hook tries to fly to the moon.

Smee suddenly becomes smart.

Peter and the Lost Boys find a parallel universe in Neverland with an Egyptian theme. Will they escape or be enslaved like their Egyptian counterparts?

Michael awakenes a Viking opera singer who has the ability to enslave others with her music. Frau Brumhandel joins the pirates and falls in love with Captain Hook.

A clever trap set by the Lost Boys looks like it will spell the end of Captain James Hook. But Hook manages to save his life by making Peter's look incomplete and meaningless by comparison. A stunned Peter fantasizes about growing up and experiencing a full life like Hook's. His fantasy soon becomes a reality as he begins rapidly aging; as he does, all of Neverland begins fading away...

The pirates capture Wendy and most of the Lost Boys while investigating the change in the island. When Hook learns that Peter Pan is growing up, he realizes that Peter no longer has a unique edge and can be beaten. Meanwhile, the Twins fly to Monday Island so learn how to restore their leader and their home. They find out that the fate of Neverland and all its inhabitants now hinges on Peter's bond with the ailing Tinker Bell.