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This article explores the Japanese animated films of Hayao Miyazaki and Studio Ghibli, which are outstanding contributions to contemporary popular culture. It describes their representation of developmental experiences of children and adolescents and compares them with work in the British and American traditions of children's fiction. It deploys psychoanalytic perspectives to suggest that one of their many admirable qualities is their sensitivity to the unconscious anxieties of normal children. While the films belong broadly in the genre of fantasy, they nevertheless convey a subtle awareness of social differences and changes. Their traditional method of hand-drawn animation is shown to make possible a great diversity and delicacy of visual representation. The films provide many beautiful animated representations of natural, man-made, and imagined environments and express deep concerns. After an overview of Miyazaki's work, the article gives a more detailed consideration of Our Neighbour Totoro, Ponyo, and Porco Rosso.