This 1984 family fantasy adventure has been rereleased for its 40th anniversary; it is an ambitious German production in English (with the opening scenes shot in Vancouver) from director Wolfgang Petersen, featuring Spielbergian mop-haired kids and an extravaganza of wondrous beasts and princesses – surely an influence on the Harry Potter movies a generation later. It is freely adapted from one section of the popular German children’s story Die Unendliche Geschichte by Michael Ende. Oddly, given the title, the film does of course provide us with a resoundingly happy ending (although more franchise episodes were to come).

A lonely, bullied boy called Bastian (Barret Oliver) is devastated by the recent death of his mother; his emotionally cold father brusquely tells him not to dwell on his feelings and just get on with things. One day Bastian runs away from the kids tormenting him and hides in a dusty old antiquarian bookshop run by Mr Coreander (Thomas Hill), who takes pity on him and shows him a fascinating book called The NeverEnding Story. Bastian borrows it and while hiding away from his schoolmates instantly becomes engrossed in the tale that is dramatised before our eyes. The magical land of Fantasia is threatened by a destructive force called the Nothing which has caused the young Empress (Tami Stronach) to fall ill. The people of Fantasia call upon a young hero Atreyu (Noah Hathaway) to save them – shades of Frank Herbert’s Dune, perhaps? He must go on a quest to cure what ails the Empress and is in need of help from Bastian, who is astonished to find that he can enter the story himself.

I have to admit that, compared to other movies from this era in this vein, I much prefer Rob Reiner’s The Princess Bride, which adds comedy to the mix; once the action here leaves the real world with its real jeopardy for the made-up world of dragons, the story’s energy levels dip. But there’s no doubt of the rousing urgency and terrific design of this likable movie, and the scene where Atreyu’s beloved horse Artax begins to sink into the swamp is absolutely gripping.

And there are some interesting implied lessons about mental health that were acceptable in 1984 but maybe not today. The story is of course a parable for Bastian coming to terms with his mother’s death, but the Artax scene and others effectively confirm his father’s attitude: keep going, keep forging onwards, don’t stop to mope or you will sink into the slough of despondance. This film’s fans will be thrilled to see it once again on the big screen.

• The NeverEnding Story is in UK cinemas from 2 August, and is streaming on Stan in Australia.