Bastian Balthazar Bux is a shy boy who lives with his widowed father Barney. One morning, Barney tells Bastian of his concern after hearing he daydreams in school and tells Bastian he needs to stop. On his way to school, Bastian is chased by bullies, and escapes by hiding in a bookstore. He meets the owner,
Carl Conrad Coreander, and Bastian's interest in books leads him to ask about the one Mr. Coreander is reading,
The Neverending Story, but he advises against reading it. With his curiosity piqued, Bastian secretly takes the book. Arriving at school late, Bastian hides in the building's attic to read. The book describes the world of Fantasia, a fantasy realm that is slowly being destroyed by a malevolent force called "
The Nothing". Messengers are heading to the Ivory Tower to seek help from the
Childlike Empress. To their dismay, they learn that she has fallen ill. The young warrior
Atreyu is tasked with discovering a cure for her illness in order to save Fantasia. Atreyu is given an amulet called Auryn that can guide and protect him in the quest. As Atreyu sets out, a
wolf-like being named
Gmork is sent to kill Atreyu. Atreyu's quest leads him to seek the advice of Morla, the Ancient One, in the Swamps of Sadness. While making their way through the swamp, Atreyu's horse Artax is overcome by the sadness and sinks into the swamp, leaving Atreyu to continue alone. Morla, weary and indifferent, being a prisoner in the swamp, directs Atreyu to the Southern Oracle, ten thousand miles distant instead of helping him directly. Gmork closes in as an exhausted Atreyu begins to sink into the swamp before being saved by the Luck Dragon
Falkor, who takes him to the home of Urgl and Engywook, two
gnomes who live near the gates to the Southern Oracle. Atreyu just manages to make it through the first deadly gate but at the second gate, a mirror reveals an image of Bastian reading the book. Atreyu eventually meets the Southern Oracle, who tells him that the only way to save the Empress is to find a human child who lives beyond the boundaries of Fantasia to give her a new name. In flight, Atreyu is knocked from Falkor's back by the Nothing, losing the Auryn in the process. He wakes on the shore of some abandoned ancient ruins, where he finds several murals depicting his adventure, including one of Gmork, who explains that Fantasia represents humanity's imagination and is thus without boundaries, while the Nothing is a manifestation of the loss of
hopes and dreams. Gmork lunges at Atreyu who slays him with an improvised weapon as the Nothing begins consuming the ruins. Falkor manages to retrieve Auryn and rescue Atreyu. Later only small fragments of Fantasia remain in a starry void. Fearing that they have failed, they come upon the Ivory Tower intact. Inside, Atreyu reports he failed the Empress, but she assures him that he has brought to her a human child who has been following his quest. She explains that Bastian has been following Atreyu's adventures. He has become a part of the story they are all sharing in. As the Nothing begins to destroy the Tower, Atreyu is knocked unconscious. The Empress pleads with Bastian to call out her new name in order to save Fantasia. Filled with doubt, Bastian declines to believe any of it could be happening. After she implores him directly to call out her new name, he runs to the window of the attic and calls out her new name: "Moonchild". The Empress presents Bastian with a grain of sand, the last remnant of Fantasia. The Empress tells him that he has the power to bring Fantasia back with his imagination. Bastian re-creates Fantasia and flies on Falkor's back to see the land and its inhabitants restored, including Atreyu and
Artax. When Falkor asks what his next wish will be, Bastian brings Falkor to the real world to chase down the school bullies. The film narrates that Bastian had many more wishes and adventures before returning to the ordinary world but that is another story. ==Cast==