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I'm looking for a the title of a movie:

  • It came out around 2005.
  • I saw only the second half of it, so any details here are about the second half.

Plot:

A boy who has lost his mother who somehow ends up in a strange fantasy world. There, he can wish for anything, but every time he makes a wish, he loses a memory. His travel companion is another boy who is a native of the fantasy world. The antagonist of the movie is a witch who hunts the boy.

In the end of the movie the boy defeats the witch by using his last wish to give her a heart then she and her minions are destroyed. He then wakes up in the real world and it turns out it was all a dream.

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The NeverEnding Story II: The Next Chapter

(bolding mine)

Bastian Balthazar Bux seeks to join his school's swimming team, but his ability to jump off a diving board is marred by his acrophobia (fear of heights). He revisits Carl Conrad Coreander's antiquarian bookstore to seek advice on courage, where he rediscovers the Neverending Story and hears the Childlike Empress call out to him for aid. Bastian takes the book home while the Auryn amulet magically comes off the book cover which Bastian takes and is summoned to Fantasia, where he meets a bird-like creature named Nimbly and is reunited with Atreyu. After the group encounters and escapes from giants, Bastian comes to understand that a force called "Emptiness" is spreading across Fantasia. This force has been brought about by the evil sorceress Xayide, who seeks to seize power over Fantasia. To hinder Bastian's quest, Xayide's inventor Tri-Face develops an apparatus that strips Bastian of a memory each time he uses the Auryn amulet to make a wish. Nimbly was sent as a spy to persuade Bastian to make wishes until he is unable to remember why he came to Fantasia.

....

Atreyu determines what Xayide is planning, while Bastian is fully persuaded that Atreyu has turned on him. In a struggle between the two, Atreyu is knocked over a cliff and falls to his death. Returning to Xayide, Bastian discovers the apparatus for himself and learns that he only has two memories left, consisting of his mother and father. Bastian uses his penultimate memory of his mother to wish Atreyu back to life. Xayide tries to force Bastian to use his last wish to return home. Bastian agrees to do so, but wishes for the sorceress "to have a heart" instead. This fills Xayide with emotion, negating the Emptiness within her and which she controls. Overcome with compassion, Xayide explodes in a blast of light, and Fantasia is restored. Having been freed, the Childlike Empress thanks Bastian for his help while Bastian gives her the Auryn amulet and shows him the way home: a cliff overlooking a waterfall to help Bastian overcome his fear of heights. Encouraged by Barney and Atreyu, Bastian jumps off and returns home safely while the Auryn amulet magically goes back onto the book cover.

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    It's an adaptation of the second half of the book, The NeverEnding Story, where Bastian had the ability to create things in the world by telling stories (because people from our world are the source of creativity and fantasy) and the harm he causes is because he tries to tell stories to "improve" the world, and thereby himself.
    – FuzzyBoots
    Commented Jun 22, 2021 at 20:13
  • First book covered in scifi.stackexchange.com/q/18803/23243
    – FuzzyBoots
    Commented Jun 22, 2021 at 20:19

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