A group of hunters are searching for a big, green ogre named Shrek. When he sneaks behind them, he puts out one of the men's torches and scares them away. The next day, lots of fairy tale creatures are arrested, including a talking donkey. He manages to escape and tries to live with Shrek, but he doesn't let him... well, for one day, outside. Then that evening, all the fairy tale creatures are scattered everywhere in Shrek's swamp because they were sent by Lord Farquaad. So Shrek and Donkey go out to find him in Duloc. Meanwhile, Farquaad is looking for someone to marry -- Princess Fiona, who is locked up in a castle guarded by a dragon. As Shrek and Donkey arrive, Farquaad starts a tournament involving the knights fighting each other. But when he sees the ogre, he hatches a new plan -- to kill him. And the one who does so would be the champion. The battle begins with Shrek knocking the knights out with ale, and ends with him still standing. Farquaad gives Shrek a quest on rescuing Fiona. Donkey follows him on this quest. To reach the entrance, they had to cross a bridge above a boiling lake of lava. The bridge was also rickety and swinging. As they cross, Donkey accidently steps on a piece, and it falls into the lava. He looks down, and turns around facing Shrek. He moves the bridge, and Donkey backs up and up until he's made it. Then Donkey sees a dragon's eye. The real thing appears and begins breathing fire, and throws Shrek high into the tower where the princess is found. Donkey now learns that the dragon is a girl. But when the three escape, the dragon still chases them out to the exit, and breathes fire at the bridge, burning it. Now they are holding onto it, and escape as the dragon is now stopped by a chain around its neck. Outside, when Fiona sees the real Shrek without a knight's disguise, she finally knows that he's an ogre. But first, she has to sleep in different places before being able to marry Farquaad. Along the way, they meet Robin Hood, whom Fiona fights off. In the end, Shrek's butt has an arrow on it. The next night, Donkey now knows that whenever it's dark, Fiona turns into an ogre. He recommends that she should marry Shrek instead. Then Farquaad appears the next morning, and reminds Shrek that his swamp is back to normal. But when he goes back, he sees Donkey trying to make it "their swamp". Shrek apologizes, and that he and Donkey are now friends. The dragon arrives, and takes them to Lord Farquaad's castle. Before they even get married, Shrek interrupts. Then Fiona sees the sunset, and turns into an ogre again. The guards try to take both her and Shrek away, until the dragon breaks into the window and eats up Farquaad, but belches out his crown. As Shrek and Fiona kiss, they live "ugly" ever after.