Child was seemingly abandoned by his father. Mother had most likely died when he was younger. He is most likely being taken care of by elder relatives or foster parents.
Only things I can remember is that on the way home from the store at night, a group of kids take his cap and play street hockey with it. The woman caretaker complains she will have to wash it for him and also complains that the crackers he bought had too much salt on them and she guesses she can scrap the excess off for her husband who is bed ridden.
He starts to see a creature that is man sized, but with a big head. It resembled a monster or a puppet of some kind. I am not sure if other creatures spilled over to his world or he into theirs. At the end of the movie it is revealed that the large creature that was following him was his father. He had some how got lost or trapped in the other world, but wanted to reunite with his son. I believe the boy went with his father to this other world or maybe the father stayed in this one.
I do not know much more about the movie, other than it feels European, but was in English as I recall. Can not remember if it was dubbed or not. I think the major points was blind faithbelief in fantasy.
The Never Ending Story
Mio in the Land of Faraway