Peter borrows a crystal from the Ice Caves while exploring with the Lost Boys. His actions accidentally summon Kyros the Ice King, who is not pleased by this theft. The angry monarch retaliates by creating a huge blizzard in Neverland that freezes everyone solid. Peter has no choice but to appease the Ice King by returning the crystal - but first he has to thaw all his friends out so that they can help him.

Hard-to-Hit sets off to find a lost Indian City, Sintata.

Tootles accidentally releases an ancient dragon.

While exploring a cave, Peter, Slightly, and John open a treasure chest that contains the ghost of Captain Patch (a.k.a. Jaspar Hook). Patch's ghost has grown powerful enough to summon his old ship The Rake from beyond to help him exact revenge on his younger brother James for murdering him years ago. The evil ghost won't stop at destroying Hook and the Jolly Roger – all of Neverland is at risk. To survive this threat, Peter Pan and Captain Hook must combine forces and banish Patch forever.

Michael has a recurring nightmare, which seems to be coming true.