Shrek is a smelly, cranky and ugly ogre who lives by himself in the swamp. One night, he finds that he has encroachers in his swamp. Fairy tale creatures have been banished from their kingdom by the evil-Lord Farquaad. In order to regain the peace and quiet of his swamp Shrek agrees to take the matter up with Lord Farquaad. Accompanying him on this mission is a wisecracking donkey that will do anything for Shrek, except shut up.
Shrek confronts Lord Farquaad demanding his land back. Farquaad strikes a deal with Shrek. He tells Shrek to get his swamp back he will have to rescue Princess Fiona from a castle guarded by a dragon. Shrek manages to rescue Princess Fiona from the Dragon who falls in love with the donkey as she is a girl Dragon. Fiona is a little disgruntled at being saved by an ogre and not by Prince Charming. However, despite their differences Fiona and Shrek begin to like each other.
Fiona is hiding a secret. At nightfall she turns in to an ogress because of a spell she is under. This spell can only be broken by true love’s first kiss. Shrek overhears part of this and misunderstands. He thinks Fiona doesn’t love him because he is ugly. Just when Fiona decides she will tell Shrek the truth the sun rises and she becomes her beautiful self again. Lord Farquaad arrives and takes Fiona to his castle and Shrek returns to his swamp. Both feel miserable. Later, Shrek, Donkey and the Dragon head to Farquaad’s castle, to stop Fiona from marrying him. When they arrive it is sunset and Fiona becomes and an ogress again. Farquaad doesn’t want to marry her and sets the guards on everybody. The Dragon eats Farquaad up and Shrek and Fiona kiss. As per the spell if Fiona finds true love’s first kiss, she will take love’s true form. Fiona becomes an ogress forever and marries Shrek and they live happily ever after.