Opening Sequence

The Jolly Roger is featured.

In the Characters' Past

We are introduced to a young Killian Jones, a lieutenant about to join his brother, Captain Liam Jones, on board. As Liam arrives to welcome Killian, they discuss the mission the King has given him. He gifts Killian with a sextant that will guide them to a strange new land and will bring peace to the kingdom. The ship sets sail but a crewman spots a trio of enemy ships. This prompts Liam to deploy the “Pegasus,” and lower a giant sail that’s made from the feathers of a real Pegasus. As the horse could fly, so now can they, and they are able to leave the rival ships behind. Liam tells Killian to set a course for the second star to the right and straight on until morning.

The Jones Brothers land on an island that is revealed to be Neverland. Liam says the king wants a plant from here that can heal any injury. Suddenly, Peter Pan appears to greet the brothers and explains that he is the only person on this island. Liam shows him a sketch of the plant, which is revealed to be dreamshade. Pan warns them that it’s the deadliest plant on the island and that their King wants it to kill, not to heal. Liam doesn’t believe him but Killian begins to question if the King has sent them after a weapon. When they reach the plant, the brothers argue, as Killian believes Pan and Liam does not. Liam takes one and cuts it on his arm to prove to Killian that it is not deadly, but collapses as the poison invades his body. Pan appears, offering Killian a deal in exchange for saving Liam by showing him a spring that will heal him. He cautions Killian that all magic comes with a price. Killian says he is willing to do anything and brings the water to Liam, who is then healed.

As the vessel flies to return to its port, Liam apologizes to Killian and believes that they were tricked by the king to use the dreamshade to fuel a deadly war. Unfortunately, as soon as they are out of the league of Neverland, Liam suddenly collapses and dies in front of Killian, as the magical water can only work on persons within Neverland's league. After Liam's burial at sea, Killian, who is now Captain, is furious over what he sees as cowardly and immoral methods used by his own kingdom. He rallies the crew to join him in defying the King by burning the Pegasus' feathers and taking over the vessel, becoming pirates, and vowing never to sail to "that land" again.

In Neverland

At Peter Pan's camp, one of the Lost Boys, Devin, starts to bully Henry, prompting Henry to defend himself with a stick. Pan suggests that they use real swords. He tells Henry that Neverland runs on imagination and belief and so if he closes his eyes and believes he’s holding a real sword, the stick will indeed become one. When it does, Pan is impressed. Henry uses the sword to cut his opponent's stick and slashes him across the face. He quickly apologizes for giving him the scar, but Pan and the other Lost Boys cheer Henry on.

As they investigate Neal's cave, Emma discovers chalk markings, indicating that Neal was keeping track of the time he spent in Neverland. However, the marks stop abruptly and Emma thinks this is because he lost hope, as she did when she was in the foster system. This leads Emma to believe that Henry is about to lose hope as well. Mary Margaret suggests sending him a message to let him know his family is looking for him. Hook tells David that he knows a way to save him but David doesn’t want to get off course, believing it would be selfish. David later finds a military insignia on the ground, which Hook discovers came from his brother's satchel, but lies to him that Liam lost in a duel with Pan. He then spots a rock above them called Dead Man’s Peak, where he claims they could find a sextant that could help them to use Neal’s star chart to navigate off the island. Knowing that his hours are running out, David says goodbye to a perplexed Emma and Mary Margaret, asking Emma to tell Henry that his Grandpa loves him. He and Hook then go off on their quest for the sextant.

Emma, Mary Margaret, and Regina set a trap and capture Devin. Emma tells him that they can save all the Lost Boys but Devin refuses and tells them he is here because he does not want to go home. Regina decides that the only way to send Henry a message is to take out Devin's heart and control him as the messenger. Mary Margaret objects but Emma decides Regina's idea is the right choice. Controlled, Devin returns to camp and gives Henry the message. Henry sees them through a compact mirror but throws it away when Pan approaches.

Hook and David reach the pit and Hook tells David he'll go first. When he gets there, Peter Pan offers a reluctant Hook a deal to allow him to leave Neverland with Emma in return for Hook killing David. David reaches the top by himself and Pan disappears. Having heard everything, he takes out his sword but collapses as the dreamshade starts to spread to his heart. Hook fills up the canteen with the magic water and tells David that once he's drunk the water, he will not be able to leave Neverland because the water is the island's magic. David tells Hook that's a small price to pay; he realizes also that Hook lied to him about the sextant, knowing David would refuse any excursion to save his life.

The team are reunited and David tells them that Hook saved his life from a Lost Boy's poisoned arrow. They give Hook a toast and Emma thanks him. Hook then asks Emma for a kiss as thanks and Emma kisses him passionately though she tells him it was a one time thing. Pan returns to reveal to Hook that Neal is alive and Pan is going to make sure that Emma will see the type of person Hook really is. Elsewhere, Pan orders Felix to hang up the cage of an unconscious Neal on a tree next to another caged captive.