Warmed by the fire and gladdened by Peter's newfound health, the band finds spirit enough to descend the mountain. But the danger is not yet over - Peter is accosted by the banished Long Lost Boys at the foot of the mountain, where he, John, and Wendy are thrown in the quicksand to sink. Luckily, they manage to pull themselves out, but during the interval, Ravello has arrived, with his returned circus animals. The animals are about to devour Peter and the Explorers, when a band of warring fairies descend and smother the animals. Hook is enraged, and vows to fight the weaponless Peter, but Peter is again saved, this time by the dog the children brought along. Hook is attacked by the Newfoundland, and is at the verge of death, when Wendy says all he needs to heal is a bit of sleep. She gives him a goodnight kiss, and tucks the dying man under his tattered red coat.
The children manage to escape without harm, and even find a way home with help from Mr. Smee, but Peter remains on the island. He cannot fly anywhere, because his shadow has not yet grown back. Wendy's good-bye words to Peter are, "I think your mother only shut the window to keep out the FOG!"
Unknown to Peter, Ravello "repairs" himself, once again becoming Captain Hook.
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