After Fiona and their three children scare away some teenage trick or treaters, Shrek, Donkey, Puss, the Three Little Pigs, the Big Bad Wolf, Gingy, and Pinocchio (after unsuccessfully trying to scare Shrek and his family) decide to tell scary stories. Shrek claims that whoever can tell the scariest story without getting eliminated will be crowned King of Halloween. They go to the rundown kingdom of Duloc where Lord Farquaad once reigned and get settled inside his abandoned castle. Each takes turns telling their story.
Puss in Boots returns with the help of three kittens to rescue a precious ruby from the evil Whisperer.
Newlyweds Shrek (character) and Princess Fiona return from their honeymoon to find they have been invited by Fiona's parents to a royal ball to celebrate their marriage. Shrek refuses to go at first, but Fiona talks him into it, and along with Donkey (Shrek), they travel to the kingdom of Far Far Away. They meet Fiona's parents, King Harold and Queen Lillian, who are shocked to see both their daughter and son-in-law are ogres, with Harold particularly repulsed. At dinner, Shrek and Harold get into a heated argument over how Shrek and Fiona will raise their family, and Fiona, disgusted at Shrek and Harold's behavior, locks herself away in her room that evening. Shrek worries that he has lost his true love, particularly after finding her childhood diary and reading that she was once infatuated with Prince Charming.
