Hathaway was born in Los Angeles, California. He began appearing in commercials at age three, and later starred in several TV films and series, including an episode of Family Ties, episode 8 of season 4 called Designated Hitter. At the age of six he appeared in Battlestar Galactica, portraying Boxey, for which he received a nomination in the first Young Artist Awards.
He was cast as Atreyu in the 1984 film The NeverEnding Story. He received his second Young Artist Awards nomination and won the award for Best Younger Actor in the 12th Annual Saturn Awards.

For the role Hathaway performed his own stunts, leading to a few near-injuries; German director Wolfgang Petersen said: .mw-parser-output .templatequote{overflow:hidden;margin:1em 0;padding:0 40px}.mw-parser-output .templatequote .templatequotecite{line-height:1.5em;text-align:left;padding-left:1.6em;margin-top:0}

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