The nursery is where Wendy Darling, John Darling, and Michael Darling sleep in the story of Peter and Wendy, and is where the story begins and ends. In some adaptations of the story, such as the 1953 Disney film, George is fed up with the stories that have made his children less practical, and he angrily declares that Wendy has gotten too old to continue staying in the nursery with her brothers, and will have to have a separate room by the next night as her first step in growing up. In another, he instead screams at Wendy that she will begin etiquette lessons the next morning along with Wendy having a separate room from her brothers.

It is typically depicted as a large, sometimes spacious, room with three beds; sometimes, a doghouse is put into the room as well for Nana to be comfortable in. Stage presentations use a tall casement window to facilitate Peter and the other children flying in and out.

In Victorian and Edwardian times, for the wealthy and middle classes, a nursery was a suite of rooms, usually at the top of a house, made for the purpose of caring for a family's children. Sometimes, this would include the night nursery where the children slept, and a day nursery where they ate and played, or a combination thereof. The nursery suite would include some bathroom facilities and possibly a small kitchen. Like in Peter Pan, children who became too old to continue their care in the nursery got a separate room once they became old enough to leave.