Whatever life holds in store for me, I will never forget these words: "With great power comes great responsibility."
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Neverland is a magical island-like world and the home of Peter Pan. It is the main location in Disney's 1953 animated feature film, Peter Pan and its spin-offs.
It is a magic place 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 Neverland 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 Tootles, who reminded her of her younger brother. Apparently, this power works in both senses: the longer one stays outside of Neverland, the more they believe it was only a dream, like Wendy's father implies.
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 Neverland 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 Neverland was all too real.