Peter is a seven-day-old infant who, like "all" infants, used to be part bird. Peter has complete faith in his flying abilities, so, upon hearing a discussion of his adult life, he is able to escape out of the window of his London home and return to the Kensington Gardens. Upon returning to the Gardens, Peter is shocked to learn from the crow Solomon Caw that he is not still a bird, but more like a human - Solomon says he is crossed between them as a "Betwixt-and-Between". Unfortunately, Peter now knows he cannot fly, so he is stranded in the Kensington Gardens. At first, Peter can only get around on foot, but he commissions the building of a child-sized thrush's nest that he can use as a boat which he uses to navigate the Gardens by way of the Serpentine
Peter feels rather guilty for leaving his mother, but this is mostly due to the fact that he believes she misses him terribly. He considers returning to live with her, but decides to go back to the Gardens to say his last good-byes. Unfortunately, Peter stays too long in the Gardens; when he uses his second wish to go home permanently, he is devastated to learn that, in his absence, his mother has given birth to another boy she can love. Peter returns, heartbroken, to the Kensington Gardens.
Peter later meets a little girl named Maimie Mannering who is lost in the Gardens. He and Maimie become fast friends, and little Peter asks her to marry him. Maimie nearly stays with him, but realizes that her mother must be missing her dreadfully. So she leaves Peter to return home. Maimie does not forget Peter, however; when she is older she makes presents and letters for him, and she even gives him an imaginary goat which he rides around every night.
Peter makes night-time calls on the city of London, listening in on Mrs Mary Darling's bedtime stories by the open window. One night, Mrs Darling finds leaves from Peter's tunic on the bedroom floor. The next night, Peter shows up at the Darling house. He terrifies Mrs Darling and is nearly captured by the nurse-dog Nana. Peter escapes, but he ends up leaving his shadow in the nursery.
Peter soon returns to reclaim his nockehead. When he is not able to attach it, Wendy Darling kindly agrees to sew it on. Peter is not romantically fond of Wendy, but he learns that she knows lots of bedtime stories, and he tries to lure her to Neverland to be mother to his band of Lost Boys. He agrees to take her brothers, Michael and John, teaches them all to fly, and brings them all to his island.
Once on the island, Peter welcomes Wendy to his underground home, and she immediately assumes the role of mother figure. Peter takes the Darlings on several adventures, the first truly dangerous one occurring at Mermaids' Lagoon. At Mermaids' Lagoon, Peter and the Lost Boys save the princess Tiger Lily and become involved in a battle with the pirates, including the evil Captain Hook. Peter is wounded when Hook claws him. He believes he will die, stranded on a rock that is sinking in water, but he views death as "an awfully big adventure". Luckily, a bird allows him to use her nest as a boat (a reference to the thrush's nest, see above), and Peter sails home.
Because he has saved Tiger Lily, the Indians are devoted to him, guarding his home from the next imminent pirate attack. Meanwhile, Wendy begins to fall in love with Peter. Peter is confused and disturbed by this turn of events; when he voices his concern, he hurts Wendy's feelings, and she decides to take John and Michael and return to England. Unfortunately, and unbeknownest to Peter, Wendy and the boys are captured by Captain Hook, who also tries to poison Peter's medicine while the boy is asleep. When Peter awakes, he learns from the fairy Tinker Bell that Wendy has been kidnapped — in an effort to please Wendy, he goes to drink his medicine. Tink does not have time to warn him of the poison, and instead drinks it herself, causing her near death. Peter invokes the sympathy of children who might be dreaming of him, and Tinker Bell is saved.
Peter heads to the ship. On the way, he encounters the ticking crocodile; Peter decides to copy the tick, so any animals will recognise it and leave him unharmed. He does not realise that his is still ticking as he boards the ship, where Hook cowers, mistaking him for the crocodile. While the pirates are searching for the croc, Peter sneaks into the cabin to steal the keys and free the Lost Boys. When the pirates investigate a noise in the cabin, Peter kills them. When he finally reveals himself, he and Hook fall to in the climactic battle, which Peter easily wins. He kicks Hook into the jaws of the waiting crocodile. Then Peter takes control of the ship, and sails the seas back to London.
Before Wendy and her brothers arrive at their house, Peter flies ahead, to try and bar the window so Wendy will think her mother has forgotten her. But when he learns of Mrs Darling's distress, he bitterly leaves the door unlocked and flies away. Peter returns briefly, and he meets Mrs Darling, who has agreed to adopt the Lost Boys. She offers to adopt Peter as well, but Peter refuses, afraid they will "catch him and make him a man". It is hinted that Mary Darling knew Peter when she was a girl, because she is left slightly changed when Peter leaves.
Peter promises to return for Wendy every spring, but he remembers only twice — Peter is usually very forgetful, however; after the passing of only one year, he has already forgotten Captain Hook and Tinker Bell. He returns for Wendy years later, but Wendy is now grown, with a daughter of her own. When Peter learns that Wendy has betrayed him by growing up, he is angry and heartbroken. But Wendy's daughter Jane agrees to come to Neverland as Peter's new mother.
