Now that's he married to Princess Fiona (voice of CAMERON DIAZ), swamp resident Shrek (voice of MIKE MYERS) would seem to be a happy ogre. Yet, not only must he deal with his persistent sidekick, Donkey (voice of EDDIE MURPHY), but also the fact that Fiona's parents, Queen Lillian (voice of JULIE ANDREWS) and King Harold (voice of JOHN CLEESE), have summoned them to their castle in Far, Far Away Land.
Shrek is reluctant to go, but Fiona convinces him and soon they and Donkey set out on their long trek. While Shrek isn't surprised by his in-laws' reception, Fiona is upset that her parents are disappointed both by how she looks (she's in ogre form) and who she married.
With pressure from Fiona's Fairy Godmother (voice of JENNIFER SAUNDERS) who wanted her son Prince Charming (voice of RUPERT EVERETT), to be the one who rescued and then married Fiona rather than Shrek, King Harold tries to do in the ogre. He does so by hiring the feline assassin Puss in Boots (voice of ANTONIO BANDERAS).
With a magic potion causing Shrek, Donkey and Fiona to become physically attractive, and Fiona being under another spell where she'll fall in love with the first person she kisses, the characters must overcome various obstacles as they try to prevent Harold, Charming and the Fairy Godmother from getting their way.