Never Dead Ned, an immortal soldier who has problems escaping death, is appointed commander of the Ogre Company and must take charge of a ragtag group of soldiers with questionable fighting skills.
Shrek, his ogre sensibilities tested by the adoring fairy tale creatures that live near his swamp, decides to tell them his version of "Sleeping Beauty" in hopes they will go away.
Thimbletack, a brownie who protects a precious book from ogres and goblins, is mad when the Grace family moves into his quiet home, disturbing Thimbletack's peace and threatening the safety of the book.
Brief descriptions of trolls, dragons, cyclopes, witches, vampires, werewolves, and other creatures accompany directions for creating costumes and makeup for each of the characters.
Shrek and Fiona want to move back to the swamp, but they first need to find and convince Arthur Pendragon that he is better suited to be king than Shrek.
