Peter and four other orphans are taken aboard a rickety old ship, the Never Land, to be delivered as servants to the evil king of Rundoon. Also on board the ship is Molly, daughter of the British Ambassador to Rundoon, and a mysterious trunk filled with a special treasure. The feared pirate Captain Black Stache knows there's a valuable treasure on board, though he doesn't know what it is. Peter befriends Molly and finds out that she and her father are Starcatchers, members of a centuries-old secret society that protects humanity by making sure that evil people don't get their hands on starstuff, magical material that falls from the stars and changes the nature of everything it touches.
Through storm, treachery, and shipwreck, Peter, Molly, and the boys end up on an island with the treasure, the pirates, fierce natives, the villainous first mate of the Never Land, mermaids created by the starstuff, and a giant crocodile. While Peter and Molly try to get the starstuff for the Starcatchers, everyone else is battling to get it for themselves.