King Harold (John Cleese) is dying and his ogre son-in-law Shrek (Mike Myers) and daughter Princess Fiona (Cameron Diaz) are next in line to be King and Queen of Far Far Away. Shrek insists that an ogre as king is a bad idea and that there has to be someone else for the job. Before dying, Harold tells Shrek that there is another heir: his nephew, Arthur Pendragon (Justin Timberlake). Shrek, Donkey (Eddie Murphy) and Puss in Boots (Antonio Banderas) set out to retrieve Arthur. As they’re sailing away, Fiona announces to Shrek that she is pregnant. Shrek begins having nightmares about his future children.
The trio journey to Worcestershire Academy, an elite boarding school, where they discover that Arthur (“Artie”, as he prefers to be called) is a scrawny 16-year old underachiever picked on by everyone.
At the school pep rally Shrek tells Artie he’s going to be king of Far Far Away. Artie is excited until Donkey and Puss inadvertently scare him by talking about the responsibilities of being king while they’re sailing home. Panicked, Artie tries to take control of the ship and crashes it on an island where they meet Artie’s retired wizard teacher, Merlin (Eric Idle).
Meanwhile, a vengeful Prince Charming (Rupert Everett) has gone to the Poison Apple tavern, where he encounters a variety of fairy tale villains, assorted outlaws, black knights, pirates, malevolent trees, and wicked witches. Although they initially despise Charming, he persuades them to fight for their “happily ever after”.
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