It is a magical world that exists within a star which Peter Pan refers to as "the second star to the right, and straight on till morning!" Although reputed to prevent people from "growing up" from kids to adulthood, it is implied with Captain Hook's pirate crew and the Indians that adults are indeed present in this location. Though not officially stated, it's been implied that the longer one stays in Never Land the harder it is for them to recall their former life outside it till they forget about their past completely. An example of this is in the first film in which Michael Darling begins to forget what his mother, Mary, was like (to the point where he mixes her up with Nana, describing Mary as a creature with long ears and fur coat). This discovery convinces Wendy that she and her brothers have to go home. Another was when Jane, who forgot about her family, remembers when she held Toodles, who reminded her of her younger brother.
In the first film, it seemed to have been implied that because of the fact that Mr. Darling both sounds like and resembles Captain Hook, Wendy may have been subconsciously associating her father's antagonism towards her and her stories with Hook's vendetta against Peter Pan; this suggests that Never Land was implied to have been merely dreamed up by Wendy in the first film (similar to Alice's dream of Wonderland in Alice in Wonderland), however the presence of a cloud resembling Hook's ship in the ending and Mr. Darling revealing that the ship looked familiar to him appeared to imply otherwise. The second film, however, put the doubt to rest when an adult Wendy and Peter Pan are reunited, showing that Never Land was all too real.
Fairies, both male and female,are arguably the most important and most mystical beings in all of Never Land, and its primary magic users and fairy dust. A property of their nature is the production and possession of fairy dust, the magic material which enables flying within the story for all characters. They are allied to the Lost Boys and against the pirates. The most prominent and famous fairy is Tinker Bell, Peter Pan's companion, whose name alludes to her profession as a "tinker" or fixer of pots and pans.
The Disney Fairies Peter Pan franchise has elaborated on aspects of Barrie's fairy mythology. The "Never fairies" (and associated sparrow men) live in Pixie Hollow, located in the very heart of Never Land. As stated in the original Tinker Bell movie, after a baby's first laugh breaks into numerous (bubble-looking) pieces, any piece that can blow with the wind mixed with a white dandelion and survive the trip to Pixie Hollow becomes a fairy, who then learns his/her specific magical abilities and innate talents.
In the novel and the play, between the flight from the mainland (reality) and Never Land, they are relatively simple animals which provide entertainment, instruction and some limited guidance to flyers. These Birds are described as unable to sight its shores, "even, carrying maps and consulting them at windy corners".
A half-magical bird called the Never Bird, is also very prominently featured in the novel and play.
The Lost Boys are a tribe of "children who fell out of their prams when the nurse is not looking", and who, having not been claimed by humans in seven days, were collected by the fairies and flown to the Never Land. There are no "lost girls" because, as Peter explains, girls are much too clever to fall out of their prams and be lost in this manner. There are six Lost Boys: Tootles, Nibs, Slightly, Curly, and the Twins. They live in tree houses and caves, wear animal skins, bear spears and bows and arrows, and live for adventure. They are a formidable fighting force despite their youth and they make war with the pirates, although they seem to enjoy a harmonious existence with the other inhabitants of Never Land. Their leader is Peter Pan.
The crew of the Pirate ship Jolly Roger have taken up residence off-shore, and are widely feared throughout Never Land. How they came to be in Never Land is unclear. Their captain is the ruthless James Hook, known as Captain Hook, named after (or predestined for) the hook in place of his left hand, and who is obsessed with finding Peter and his Lost Boys' secret lair and exacting revenge for the loss of his hand.
Native American tribes
There is a tribe of wigwam-dwelling Native Americans who live on the island. They have an imposing tribal chief Great Big Little Panther whose daughter Tiger Lily is the princess of the tribe. She has a crush on Peter Pan. The Piccaninny tribe are known to make ferocious and deadly war against Captain Hook and his pirates, but their connection with the Lost Boys is more lighthearted. For "many moons" the two groups have captured each other, only to promptly release the captives, as though it were a game. It is unclear how the Piccaninny tribe came to be in Never Land, although they seem to know Never Land better than anyone.
Mermaids or Mermen
Mermaids and even mermen live in the lagoon. They enjoy the company of Peter Pan but seem malevolent towards outsiders. They "sing" and play the "mermaid games" all day, like blowing bubbles, and they "love to bask out on Marooners' Rock, combing their hair in a lazy way". Wendy is enchanted by their beauty, but finds them offensive and irritating, as they would "splash her with their tails, not accidentally, but intentionally" when she attempted to steal a closer look. They occupy rock-pools and the ocean surrounding Marooners' Rock, and their homes are "coral caves underneath the waves" to which they retire at sunset and rising tide, as well as in anticipation of storms.
Animals live throughout Never Land, such as bears, tigers, lions, wolves, hippos, flamingos, and crocodiles. The airing of the Disney Fairies computer-animated movies reveal more animals most of which are woodland creatures. Rabbits, squirrels, bats, mice, a few species of arthropods, bluebirds, pigeons or doves, snowy owls, weasels, lynxes, even bison are seen in different regions of the movies' primary setting, Pixie Hollow. Some of these animals are domesticated by the fairies and used either as transport or work animals. Some even leave Never Land when the fairies go to change the season, to be released on earth.
Places of Interest
Hangman's Tree: A large, but dead tree located in Never Land, it serves as the entrance to the home of Peter Pan and the Lost Boys. The tree has multiple trap doors and secret entrances for Peter Pan and the boys to enter and exit through.
Mermaid Lagoon: As the name suggests, this area is home to a large group of mermaids. Peter Pan apparently travels here often, as they are noted fans of his.
Crocodile Creek: The home of the crocodile who ate Captain Hook's left hand. It is also said to be the location of a hidden treasure. The very mention of Crocodile Creek makes Hook very nervous.
Peg Leg Point: Mentioned only when Tinker Bell is giving directions to Peter Pan's hideout.
Blind Man's Bluff: Mentioned only when Tinker Bell is giving directions to Peter Pan's hideout.
Cannibal Cove: Mentioned only when Captain Hook says he searched there in an attempt to find Peter's hideout. As its name would suggest, it is inhabited by cannibalistic jungle natives.
Marooners' Rock: Mentioned only when Peter Pan is about to tell the mermaids the story how he cut Captain Hook's left hand and fed it to the crocodile.
Dead Man's Cave: The location only appears in the sequel Return to Never Land, Peter Pan hides Captain Hook's treasure within the cave.
Pixie Hollow: First mentioned and seen in the Disney Fairies movie series. It is home realm to all of the hundreds of fairies of Never Land. All new fairies are born there and discover their innate magical talents and skills there. It is Tinker Bell's main birthplace long before meeting Peter Pan and his gang of Lost Boys.