In 1904, in the nursery of the Darling household located in London, England, Wendy Darling tells stories of Peter Pan to her younger brothers John and Michael before their Aunt Millicent's arrival. Judging Wendy to be an "almost" full-grown woman, Aunt Millicent advises Mr. and Mrs. Darling that Wendy should be given her own bedroom. At school, Wendy is caught by her teacher, daydreaming with a drawing she made after supposedly seeing Peter in the night. The school sends a letter about this to Wendy's father at the bank. In an attempt to stop the messenger boy from delivering the letter with the help of the family's nurse dog Nana, Wendy embarrasses her father in front of his superiors. As punishment, Mr. Darling chains Nana outside and declares that it is time for Wendy to grow up and have a room of her own.