The Neverland Octopus, also known as the Beast or simply the Octopus, is a male, non-anthropomorphic (albeit unusually intelligent) giant octopus.
This gigantic octopus dwells in the Neverseas, and, much like most creatures in Neverland, has come to gain anthropomorphic characteristics over the year, though it is technically an animal. Due to its size and fearsome appetite, the Octopus was considered a sea monster by Captain Hook and his pirates, who called it "the Beast".
In 1940, Captain Hook, who had temporarily staved off the Tick-Tock Crocodile, hatched a plan to have the Octopus eat Peter Pan. As usual with Hook's schemes, this did not go even remotely according to plan; instead, the Octopus found himself finding Hook much more to his taste, and began chasing him and attempting to eat him, much as the Croc had done.
In fact, for unknown reasons, the Octopus even began displaying mannerisms of the Crocodile's while on the hunt for Hook, up to mimicking the Crocodile's trademark ticking using his suction cups. It is possible the Octopus had observed the Crocodile on the prowl and had decided that imitating such a honorably-known hunter of Hook might help him in his endeavor to eat the old codfish.
It is unknown what happened to the Octopus after 1940; as soon as the Tick-Tock Crocodile returned to Neverland, at least, he instantly took back his place as Hook's animal archenemy, with the orange eight-legger nowhere in sight.
Behind the scenes
The Octopus was created in 2002 for Return to Neverland. There has been much outcry from fans of the original Tick-Tock Crocodile, whose role is taken over by the Octopus in that film; the reasoning behind the switch is somewhat obscure to this day.
A character known as the Orange Octopus appears in the Jake and the Neverland Pirates series. While this character is sometimes thought to be the Neverland Octopus, they are quite different in appearance and behavior, though both are giant octopuses who at one point attempt to devour Captain Jas. Hook. Indeed, the Neverland Octopus had not yet started antagonizing Hook at the time Jake takes place.