It was where Captain Hook and Mr. Smee took Tiger Lily to make her reveal the whereabouts of Peter Pan's hideout. However, since Skull Rock was surrounded by water, that meant that the Crocodile could come in to try and eat Hook. In Return to Neverland, Skull Rock was abandoned (for reasons unknown, though it may have been too dangerous).
With the assistance of Mr. Smee, Captain Hook captures Tiger Lily and takes her to Skull Rock. Captain Hook places the bounded Tiger Lily on a rock sticking out of the sea. He offers to set her free if she reveals the home of Peter Pan. He points out the rising tide. However, Tiger Lily knows better than to take the Captain word and refuses to talk. Losing his patience, Hook screams that Tiger Lily has one more chance.
Unknown to any of them, Peter Pan and Wendy Darling have spotted the trio. Peter Pan is able to spook Hook and Smee by mimicking a spirit. When Hook leaves to find the source of the voice, Peter Pan begins imitating Hook , Pan orders Smee to return Tiger Lily to her people. Smee complies, but is then yelled at by the real Captain Hook, who orders Smee to put Tiger Lily back where he had her.
Pan and Hook go back and forth, until Peter Pan is discovered by Hook. After a short battle, Hook is chased off by Tick-Tock the Crocodile. By this time, Tiger Lily has almost sunk beneath the rising tide. Peter Pan doesn't notice this until it is pointed out by Wendy. Peter Pan rescues Tiger Lily, and they, along with Wendy, return to the Indian Camp.
Return to Never Land
Skull Rock makes a brief cameo appearance in the sequel when Peter Pan and Jane soar through Never Land to Hangman's Tree.
Skull Rock makes a cameo as Tinker Bell sets out in a balloon she creates to find the Mirror of Incanta. Tinker Bell intends to use the third and last wish to restore the shattered moonstone to its original form.