The Little White Bird is generally divided into three sections: the first chronicles the narrator's life in London, beginning with how he came to know a little boy named David (who joins him on his adventures), and describes other matters of his everyday life.
The second section tells the story of how Peter Pan came to be a "betwixt-and-between" and his adventures in Kensington Gardens, including his interactions with the birds as well as the fairies hidden in the park.
Finally, the third section of the book revisits London with the narrator and David. The two make brief visits to Kensington Gardens and embark on a new adventure to Patagonia.
The Little White Bird is the first story to include the famous Peter Pan character, two years before Peter Pan, or The Boy Who Wouldn't Grow Up, the play that made the character famous. While The Litte White Bird can be described as a prelude to the play, inconsistencies such as Peter Pan's age make the two stories incompatible.