Paul is the fiancé of Nora, the daughter of Lampie, the lighthouse keeper of Passamaquoddy, a small fishing town in Maine. A sailor who went missing at sea for over a year, his disappearance leaves Nora heartbroken and lonely. However, Paul is eventually rescued by a passing ship off of Cape Hatteras near North Carolina as he was the only survivor when his ship sank, but lost his memory and was taken to the hospital. Until one day, his bed all of a sudden tipped over, he hit his head, and his memory all came back to him, which led him to make his return to Passamaquoddy via ship. He then reunites with Nora in town the next morning after the storm, where she and Lampie have taken in an orphan boy named Pete who has an invisible dragon friend named Elliott before they all return to Passamaquoddy Light together.
Paul is initially skeptical of Elliott's existence, but he soon witnesses his antics and becomes friends with him. He also helps Nora and Lampie defend the lighthouse from the scheming Dr. Terminus and his henchman Hoagy, who want to capture Elliott and use him for profit. Paul also confronts The Gogans, Pete's abusive foster family, who try to claim Pete back. He stands up for Pete and tells them to leave him alone.
Trivia
Paul was played by Cal Bartlett, an American actor who also appeared in films such as The Last Starfighter and The Quick and the Dead.
He was the only survivor of a shipwreck that occurred a year before the events of the film. He suffered from memory loss and was unable to return to Nora until he was rescued by another ship.
His character was not in the original story by Seton I. Miller and S. S. Field, which was titled "Pete's Dragon and the USA (Forever After)" and featured a different setting and plot.
