Usagi and friends arrive to England and introduce themselves to Ami's cousins Wendy, John, and Michael and told them, they are going to stay for a while. That night Peter Pan showed up with his fairy friend named Tinker Bell. He tells Wendy that if they go to Neverland, they will never grow up and Usagi and the group liked the idea and decided to come along too, so they all fly off to never land with a help of pixie dust.
A ship of pirates is anchored off Never Land, commanded by Captain Hook with his sidekick, Mr. Smee. Hook boldly plots to take revenge upon Peter Pan for cutting off his hand, but he trembles at the presence of a crocodile, which consumed Hook’s hand and is eager to taste the rest of him. Hook also forms a plan to find Peter's hideout using the knowledge of Tiger Lily. The crew's restlessness is interrupted by the arrival of Peter,the Darlings, along with Sailor Moon and the gang. Tinker Bell, who is very jealous of Pan’s attention to Wendy, persuades the Lost Boys that Pan has ordered them to shoot down Wendy, which Tink refers to as a “Wendy bird”. Tinker Bell's treachery is soon found out, and Peter banishes her. John,Michael and pretty cure along with Kimba and Lyre set off with the Lost Boys to find the island's Indians, who instead capture them, believing them to be the ones responsible for taking the chief's daughter, Tiger Lily.
Meanwhile, Peter takes Wendy, Sailor moon and the sailor scouts to see the mermaids. The mischievous mermaids delight in tormenting Wendy but flee in terror at the sight of Hook. Peter, Wendy and Sailor team see that Hook and Smee have captured Tiger Lily, so that they might coerce her into revealing Peter's hideout. Peter, Wendy and the sailor team free her, and Peter is honored by the tribe. Hook then plots to take advantage of Tinker Bell's jealousy of Wendy, tricking her into revealing the location of Peter's lair. Wendy, her brothers and sailor team eventually grow homesick and plan to return home. They invite Peter and the Lost Boys to return to London and be adopted by the Darling parents. The Lost Boys agree, but Peter is so set against growing up that he refuses, presumptuously assuming that all of them will return shortly. The pirates lie in wait and capture the Lost Boy, the Darlings and the sailor team as they exit, leaving behind a time bomb to kill Peter. Tinker Bell learns of the plot just in time to snatch the bomb from Peter as it explodes.
Peter rescues Tinker Bell from the rubble and together they confront the pirates, releasing the children and the team before they can be forced to walk the plank. Peter engages Hook in single combat as the children fight off the crew, and finally succeeds in humiliating the captain. Hook and his crew flee, with the crocodile in hot pursuit. Peter gallantly commandeers the deserted ship, and with the aid of Tinker Bell's pixie dust, flies it to London with the children aboard. However, the Lost Boys decide to return to Never Land rather than be adopted in London and Sailor Moon and the team excitedly helps the lost boys prepare the ship to head for London. Mr and Mrs Darling return home from the party to find Wendy not in her bed, but sleeping at the open window. Wendy and the team awakens and excitedly tells about their adventures. The parents look out the window and see what appears to be a pirate ship in the clouds. Mr Darling, who has softened his position about Wendy staying in the nursery, recognizes it from his own childhood. Usagi and the team along with the darling family watches the ship in the starry sky, which reminded Kimba and Lyre of their magical adventure.