Picking up exactly where the first movie left off, this movie takes us to the kingdom of Far, Far Away as Shrek and Fiona return to her homeland to tell her parents (Cleese, Andrews) the good news. Not everyone is happy to find her married to an ogre, with the most irate in this group being Prince Charming (Everett), who was supposed to be the one who lifted Fiona's curse. We're also introduced to the mysterious Fairy Godmother (Saunders), and a bar called the Poison Apple, where the villains of the fairy tale world hang out, including the great ogre-slayer, Puss-in-Boots (Banderas).
When a father (Murphy) loses his lucrative "dotcom" job, and finds himself in jeopardy of financial ruin, he joins his friends (Zahn, Garlin) in opening a free-spirited "guy-run" business called "Daddy Day Care" (in his house), much to the chagrin of the owner (Huston) of a more traditionally-operated rival center.
Workaholic real-estate agent Jim Evers (Murphy) drags his family up to the big, creepy Gracey mansion in hopes of rebuilding it into a lavish new condo development. When they get there, however, the family quickly finds that they're not alone, not when 999 grim, grinning ghosts come out to socialize! With all these happy haunts that won't leave until their unfinished business has been completed, it's up to Jim to break the curse, and rediscover a family that needs him, before the clock strikes 13.
Eddie Murphy returns as the doctor who can talk to the animals. This time, it's Dolittle versus Darwin in the ultimate man versus nature showdown, in the midst of the animal kingdom's first labor strike.
Shrek (voiced by Mike Myers) is a fearsome green ogre living in isolation in his own cozy little swamp. He is not receptive to visitors, and fends off the occasional party of torch-wielding villagers with ease. But when the power-hungry Lord Farquaad (John Lithgow) turns Shrek's swamp into a relocation camp for dozens of banished fairy-tale characters (including some pesky dwarves, wolves, and fairies) Shrek's quiet, introverted life is ruined. Joined by the talkative Donkey (Eddie Murphy), Shrek makes his way to Farquaad's realm of Duloc, where the Lord promises makes Shrek and offer: He will rid Shrek's land of the unwanted visitors if Shrek will go on a simple quest to free Princess Fiona (Cameron Diaz) from her remote, dragon-guarded castle and convince her to marry Farquaad.
