In Mermaid Lagoon's first appearance, it is a deep lagoon with a big rock in the middle where the mermaids recline and Peter Pan tells them stories. There is a smaller rock under a waterfall where they sit and wash. Another one on the left side is where Wendy almost drowned.
Mermaid Lagoon makes a cameo appearance when Peter gives Jane a tour of Neverland.
As some mermaids do Jane's hair, a blonde one sneaks behind her with a giant clamshell full of water. As she attempts to soak her, Peter takes her away and the others are soaked themselves. It appears again in the end credits in the map of Neverland.
It first appeared in the episode "Surfin Turf". Jake, Izzy, Cubby and Skully were getting surf lessons from Marina. After Izzy's lesson, the surfboard is stolen by Captain Hook and Mr. Smee. Jake and his crew, accompanied by Marina, set off to take back their treasure.
It is visited again in the episode"The Mermaid's Song". Jake and his crew help Marina and Stormy prepare for the Treasure of the Tides ceremony. But Stormy would rather be surfing when she came up with the idea to use the power of the mermaid's song to hypnotize Hook, Smee, and Cubby to do all the work for her. Snappy the Hermit Crab would later rush off to warn them was abusing the power of the song.
It appears again in the episode"Treasure of the Tides". Izzy, Marina, Stormy, and the other mermaids before they set off to find the "Treasure of the Tides". Hook orders Sharky and Bones to block the lagoon using the Jolly Roger, but they were no match for the slippery Lucille the Seal who was able slip past them and recruit the help of two blue whales to force the Jolly Roger out the way so Izzy and the mermaids could catch up to Hook and Smee.
It reappears in the Halloween episode "Tricks, Treats and Treasure!" as the sea pups first stop there while trick-or-treating. The pirates were greeted by Stormy who plans to give her friends a helping of "coconut corn" but Hook and Smee try to swipe the bowl from her causing it to fall into the lagoon. Fortunately Jake use his quick wit to make a lasso out of seaweed to rescue it and return it to Stormy and they continue trick-or-treating on Neverland.
It makes appearance in the special Jake and the Never Land Pirates: Jake Saves Bucky as one of the stops in the great race between Bucky and the Jolly Roger. It reappears in the episode "Seahorse Saddle-Up!" as the starting and finish line in the seahorse Never Sea race.
It reappears in the episode "Sandy and the Clams" when Sandy the Starfish and his singing clam trio put on a show for Marina, Stormy, Jake, and his crew there before the clams are accidentally taken by Smee as decorations peace for Hook's date with Red Jessica.
In the episode "The Mermaid Queen's Voice", Queen Coralie was set to host and perform a concert them but comes down with laryngitis right before it begins. Jake and his crew know that the magical waters of Fa la la Falls would restore her voice.