Loads of talented kids turned up. And casting boss, Shaheen, was on hand to spot the stars.
"Most times you get a feeling straight away that they might be the right person," she told Newsround.
But there was no singing and dancing because this was just the first stage of casting.
The lucky ones who did a good interview will go back for more auditions later.
Live action
Wendy is the film's heroine and the twins and Curly are the Lost Boys who live with Peter.
The casting people have already found who they want to play the main part.
It's the first time the magical story about the boy who never grew up has been made into a live action flick.
Filming starts in Australia in the autumn and it flies into cinemas in time for Christmas 2003.
Watch Lizo Mzimba's report
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