Becoming Peter Pan tells the story of Peter, a human baby mysteriously found in the snowy woods near the North Pole. Santa, Mother Claus, and the elves search for his family but discover-through the guidance of a golden fairy-that Peter belongs with them. Peter grows up in Santa's Hamlet, loved by everyone except James Elf, the strict and grumpy head of the workshop. James resents Peter's playful spirit and his occasional mistakes while learning the craft of toy-making.
As Christmas approaches, James secretly plots to make Peter look irresponsible. He manipulates the boy into believing that hiding aboard Santa's sleigh on Christmas Eve would be a wonderful surprise. Peter does so, causing delays during Santa's journey. When the elves learn of this, gossip spreads, painting Peter in the worst light while ignoring his good intentions. Santa defends him, reminding everyone that mistakes are part of learning.
Still bitter, James escalates his scheme. He steals Santa's sleigh-still filled with Christmas toys-and escapes through a magical cave into Neverland. Peter and Tinker Bell follow in pursuit, eventually meeting mermaids and learning that James has joined forces with a band of pirates by pretending to be "Captain James."
To recover the sleigh, Peter teams up with Tinker Bell, the mermaids, and the Lost Boys. Together they track down the pirates, confront James, and rescue the stolen sleigh and gifts. Peter returns triumphantly to Santa's Hamlet aboard the flying sleigh with his new friends.
The Hamlet erupts in celebration as Peter is welcomed home a hero. Santa is moved to tears, relieved not only that the sleigh has been recovered but that Peter is safe. In the end, Peter's courage and goodness shine, proving that even a childlike heart can save Christmas and bring worlds together.