Sometime before the events in the series, Peter Pan carved the Forever Sword using the wood from the Forever Tree. He bestowed the sword on to Jake so the young pirate could be a good leader while Peter explores the world outside of Never Land.
Role in the series
The Forever Tree first appeared in the episode "The Sword and the Stone". While searching for treasure Captain Hook and Mr. Smee stumble upon a mysterious stone door that can only be opened by a sword. So, Hook steals Jake's wooden sword with Jake and his crew in pursuit. After a along chase through the Never Land Jungle Jake and his crew find Hook and Smee still struggling to open the stone door. Izzy discovers a message from Peter regarding the stone door revealing only a great leader can open the door with enchanted sword and nothing more. Sending Captain Hook into a rage if he couldn't see what lies behind door he wouldn't allow as he attempt to destroy Jake's wooden sword the captain lose his footing stumbles into Mr. Smee landing on a tiny palm tree that flings the duo deeper into the Never Land Jungle. With the treat of Hook no more Jake and his crew decide see what was inside as they slide down underground tunnel were they discover the massive Forever Tree.
The Forever Tree plays a larger role in the special "Jake's Never Land Rescue". It was revealed by the fairies of Never Land that the Forever Tree is the source of Never Land magic, Jake and his crew most journey to Mount Destiny before all the magic of Never Land disappear and the ancient Forever Tree fading away.