The film features significant LGBTQ+ presence, including a central transgender character, Timmy, and other queer characters like Tinker Bell. However, their identities are primarily linked to predation, addiction, and manipulation within a grim and unsettling narrative. While the film aims to comment on societal fears, the direct portrayal of LGBTQ+ characters is largely negative, associating their identities with vulnerability and misery.

The film features Tinker Bell as a transgender woman, Timmy, depicted as a complex, tragic figure exploited by Peter Pan. Her gender identity is a factor in Peter Pan's initial prejudice, leading to her manipulation and addiction. The portrayal is sympathetic, focusing on external exploitation and control rather than demeaning her identity, thus treating her with dignity despite her profound misery.