According to Warren Spector in an interview published in The Art of Epic Mickey, Pete Pan was created under the premise that 'if Pete was wearing a Peter Pan costume, and was hit on the head by a frying pan, would he believe he was the real Peter Pan?'
After the Blot's attack, Captain Hook went mad and stole the Sprite (the Wasteland's version of Tinker Bell) leaving Pete Pan unable to fly and trapped on Skull Island (Skull Rock). When Mickey rescues the Sprite, it flies to Skull Island and Pete Pan comes to the Jolly Roger to fight Hook, if you didn't defeat him already that is. This keeps Hook busy to his original antics. If you talk to Pete in Mean Street, he will give you a Power Spark.
He is voiced by Jim Cummings.
In the sequel, Pete Pan has been corrupted and is hired by the Mad Doctor to be the security guard at the construction Site in Ventureland, refusing to let Mickey and Oswald enter. In order to progress at this point, you must use either Indelible Ink or Invisible Ink to sneak past him or you can pay 500 E-Tickets so he'll let you in to come and go freely. At the end of the game, he appears with Big Bad Pete and Small Pete jumping into the Ventureland projector to possibly plan an evil scheme on Wasteland.
In the series of comics taking place before the Thinner Disaster, Pete Pan does not appear by himself, but it is mentioned in Big Bad Pete's Tales of Wasteland profile that he sometimes "wrecks havoc while posing as a Peter Pan ersatz", rather clearly implying that Pete Pan is actually Big Bad Pete in disguise.
- Even if you've defeated Captain Hook, you can still rescue the sprite and restore Pete Pan's flying ability, although this won't change the ending scene with Hook's hook sinking. It is unknown what he does after this, but is presumed that Pete Pan won't have anything to do, and most certainly if you jammed or ignored the Pirate Conversion Machine.
Unlike his other counterparts, Pete Pan is more friendly, active, honest and loyal. In fact, he shares many mannerisms with Peter Pan, including crowing like a rooster. All this is explained by Spector's telling of the origins of the character.