The movie starts out with a "perfect" man named Prince Charming finding out that Fiona was already saved from her tower, and is upset. The story then shifts to Shrek and Fiona, who are now married! They are on their honeymoon, enjoying themselves. They come back home to find Donkey anxiously awaiting their arrival, and we find that the relationship between Donkey and the Dragon didn't roll over too well. Shrek kicks Donkey out, but suddenly they get a letter from Fiona's parents... the King and Queen of Far Far Away! Shrek, knowing that when Fiona's parents see him and her as ogres they will be flabberghasted, decides he does not want to go. But then with some nagging, Shrek finally succumbs to Fiona's wanting to see her parents. Donkey comes along too!
As suspected, no one takes to Shrek and Fiona's entrance, and King Harold and Shrek end up in a big fight during dinner. Queen Lilian is a bit more forgiving. King Harold decides to get rid of Shrek and hired Puss in Boots, a cat with an attitude, and boots..