In the autumn of 1935, after his second Melbourne Cup spring, the champion resumed racing with wins in all five of his Sydney starts between March and May. Among these was his slashing of the Australasian mile record, clocking the All-Aged Plate in 1.35.5. Returning to spring racing for a tilt at his third Melbourne Cup, Peter Pan won the Hill Stakes, Spring Stakes and Craven Plate in succession, looking like an odds-on certainty to beat at Flemington. But unexplained injury overcame the chestnut in the weeks leading up to the effort… too much racing, or too much training, it was never explained. The six-year-old stallion carried a staggering 10.6 in the big event, fading to the back of the field by the finish.
Unlike Phar Lap's legend, Peter Pan's legend faded until the memory of him lived on only in those that had seen him, or inherited stories from their parents or grandparents. Unlike Phar Lap, Peter Pan had raced until he expired, allowing defeat to soil his image. He had not died in sensational, unexplained circumstances, or in a foreign land.