In the scene close to the end of the movie, right after Peter Panning's children leave with Tink to go back home, where Peter Pan is trying to decide who to leave in charge of the Lost Boys. He takes his sword out of the scabbard, trying to decide to whom he should give it. He has already taken his sword out of the scabbard and as he turns to look at the other Lost Boys, the sword is back in the scabbard and he again takes it out.