On the way home, Jess and Leslie learn that they are next-door neighbors.
Jess and Leslie find an abandoned tree house on the other side, and invent a new world, which they call Terabithia.
The fantasy world, which is a reflection on their lives, comes to life through their eyes as they explore the surroundings.
The next day at school, Leslie compliments Jess' drawing ability, and they soon become friends.
After school, they venture into the woods and swing across a creek on a rope.
Jess tries to ask his mother's permission; however, she is half-asleep and he takes her mumbling as approval.
Jess doesn't ask Leslie to accompany him, and merely looks at her house as they drive by.
Once in Terabithia, they fight with various creatures, including a troll resembling Janice, and a squirrel-like creature resembling Hoager, whom they name the 'Sqoager'.
At school, Leslie becomes frustrated by Janice's fee for using the toilet.
Jess, being traumatized by this shocking news, first denies it, then runs out of his house to check on Leslie, but he discovers the emergency vehicles surrounding her house, and has no choice but to accept Leslie's death.
The following day, Jesse and his parents visit the Burke family home to pay their respects.
Jess is impressed by her parents' happiness, and smiles as he watches their family. to Terabithia, where they fight off several creatures resembling students at their school.