Act One

Opening like a storybook, our musical adventure begins with a large ogre named Shrek narrating the story of his seventh birthday. As he narrates, the storybook comes to life, and we see Shrek's parents telling the seven-year old version of himself that it is time for him to venture out into the world on his own. As he does, his parents' warning that everyone will hate him because of his hideous looks proves to be true, and he is forced to live alone, embittered and angry in a swamp. Before our eyes, Shrek grows up, the adult ogre now stepping into the story that he was previously narrating ("Big Bright Beautiful World"). His lonely solitude is interrupted one day, however, when all of the Fairytale Creatures of the land show up to his swamp, banished there by Lord Farquaad ("Story of My Life"). Not at all pleased to have his home invaded and encouraged by the Fairytale Creatures, Shrek decides to travel to see Lord Farquaad in order to regain the privacy of his swamp ("The Goodbye Song"). Along the way, he rescues a talkative Donkey from Farquaad's guards and, after much begging on the Donkey's part ("Don't Let Me Go"), Shrek reluctantly allows him to tag along.

Meanwhile, in Duloc, we are introduced to Lord Farquaad, a tiny terror who is torturing Gingy the Gingerbread Man into revealing the whereabouts of a princess that he wishes to marry so that he may finally be a true king. Gingy claims that Princess Fiona is locked in a nearby tower, cut off by lava and a dragon. Lord Farquaad decides to have a festival to draw the name of a Duloc citizen that will have to fetch Princess Fiona for him. As the crowd gathers ("Welcome to Duloc / What's Up, Duloc?"), Shrek and Donkey arrive; Lord Farquaad demands that, in return for the deed to the swamp, Shrek must find and bring back Princess Fiona.

While Shrek and Donkey set off, the lights come up on seven-year old Fiona, stuck in her castle and dreaming that she will one day be rescued by one a prince ("True Love's First Kiss"). As she grows into a teenager, and then into a headstrong woman, she never loses her faith in her fairy tales ("I Know It's Today"). As Shrek and Donkey continue on their journey, Shrek becomes increasingly annoyed with Donkey's constant chattering ("Travel Song"). Somehow, though, deep down, a friendship has begun to form. After crossing the lava-bridge and then arriving at the castle, Shrek sets off alone to rescue Fiona while Donkey encounters a ferocious female Dragon ("Forever"). When Shrek reaches Fiona, she tries and fails to get him to play out the romantic scenarios found in her storybooks and, at last, he is forced to drag her off. Reunited with Donkey, they must then escape an angry Dragon. Fiona is thrilled to finally have her rescuer fighting for her ("This Is How a Dream Comes True"). Shrek traps the Dragon, and the trio makes it to safety, where Fiona is appalled to find that Shrek is an ogre and not Prince Charming. Shrek explains that he is merely her champion; instead, she is to wed Lord Farquaad. As the sun begins to set, Fiona becomes apprehensive, insisting that they rest and that she spend the night alone. Donkey and Shrek stay awake and, as Shrek finally opens up to his new friend for the first time, we see Fiona transformed into an ogress, alone in the moonlight ("Who I'd Be").

Act Two

The next day, Princess Fiona rises and, excited that it is her wedding day, dances around, singing ("Morning Person"). When she inquires about her groom-to-be, Shrek and Donkey let the "short" jokes fly, and Shrek begins to mock her childhood circumstances. Each thinking his/her own childhood is worse, the two begin a contest of one-upmanship that culminates in a battle of disgusting bodily noises. ("I Think I Got You Beat"). Through this, their pasts are revealed to one another, and a friendship is kindled.

Meanwhile, back in Duloc, Lord Farquaad plans his wedding, and he reveals his own sordid heritage ("The Ballad of Farquaad"). As Shrek and Fiona's newfound camaraderie grows into love, Donkey insists, with the help of the Three Blind Mice, that Shrek should tell Fiona how he feels ("Make a Move"). Before he can, though, the sun begins to set, and Fiona once again rushes away to bed. Refusing to give up on the thought, Donkey goes to the barn where Fiona has retreated, only to discover that she turns into an ogress at night due to a curse placed on her as a child by a witch. She tells Donkey that only a kiss from her true love will return her to love's true form. Alone, Shrek tries to summon the courage to express his feelings ("When Words Fail") and, when he finally goes to tell Fiona, he overhears the end of her conversation with Donkey, completely mistaking her description of herself as an ugly beast for a reference to him. Hurt, he storms off.

The next day, transformed back into her human form, Fiona decides to tell Shrek about her curse ("Morning Person – Reprise"). When Fiona tries to explain, however, Shrek rebuffs her. Farquaad and his army approach to claim Fiona, who, now upset herself, not only agrees to the marriage, but also insists that it take place before sunset. Donkey tries to appeal to Shrek, but Shrek rejects him, angry that Donkey would talk about him with Fiona behind his back, and declares he will return to his swamp, alone ("Build a Wall").

Elsewhere, while the Fairytale Creatures, evicted from the swamp, head for their new home, they decide they've had it with Farquaad's discriminatory treatment ("Freak Flag"). With a newfound confidence, they decide to return to Duloc and take on Lord Farquaad. Back at the swamp, Donkey and Shrek argue until Shrek is convinced that Donkey and Fiona weren't talking about him. Each one forgives the other, and Donkey convinces Shrek that Fiona cares about him. They rush to Duloc, and Shrek is able to stop the wedding just in the knick of time. He finally finds the words to express his feelings, declaring his love to and for Fiona ("Big Bright Beautiful World – Reprise"). Caught between love and her desire to break the curse, Fiona tries to escape the event, but the exiled Fairytale Creatures storm the wedding and protest their banishment. Amidst the protests, the sun sets, turning Fiona back into an ogress in front of everyone. Farquaad is disgusted but insists the marriage is already binding, claiming he will lock Fiona in a tower and continue to rule as Duloc's true King. Shrek whistles for the Dragon that they met earlier, and she swoops in, destroying Farquaad in one fiery breath. Finally free of Farquaad, Shrek and Fiona admit their love for one another and share a kiss. Fiona's curse is broken, and she takes her true form: an ogress. At first, she is ashamed of her looks, but Shrek declares that she is still beautiful. Shrek and Fiona begin a new life together as everyone celebrates what makes them special ("This Is Our Story"). They all live happily ever after ("I'm a Believer").