Responding to Peter's complaints that Wendy's stories aren't exciting enough, Tinker Bell enchants the pages of Wendy's book so that the story comes alive as it's told. Anyone who's in the story must enact the action and obey all the narration; this applies to Peter since he's the hero of the story. It's not long before word of this soon reaches the Jolly Roger and Hook devises a plan to steal its pages. Once he succeeds, he begins rewriting the story so that Peter cannot fly or fight and the Darlings and Lost Boys are helpless captives. Things take a turn for the better when Wendy is able to reach the stolen pages and write the Crocodile into the story.

Wendy has written down the story of Alice in Wonderland for the Lost Boys, adding Peter's name to the title after he insists that he won't hear a story that he's not in. But once again, Tinker Bell's magic has enchanted the book, and when Wendy opens the volume both she and Peter are transported into the story. It seems that when John drew the book's illustrations, he used the likenesses of Wendy, Captain Hook, Michael, and all the other inhabitants of Neverland as inspirations for Alice, the Queen of Hearts, the pig child, and the rest of Wonderland's characters. Unfortunately, Peter's name was only written into the title and not the story itself, so it is up to Wendy as the book's heroine to get them through the adventure.

Short Tom leaves the Jolly Roger.