TheShrekfranchise is one of the most iconic in all of modern media. Every ’90s and ’00s kid who grew up with the franchise can likely rattle off dozens ofits iconic quotes. There’s plenty to choose from, asShrekhas put out four movies (and two spin-offs centered onPuss in Boots) since 2001. After a decade-and-a-half away from the big screen, the titular green ogre is set to make his return with 2026’sShrek 5.
With so many sequels, it can be difficult to choose one that stands above them all. While the original will always be number one, its direct follow-up is a real contender forthe best sequelin both theShrekfranchise and DreamWorks Animation as a whole.Shrek 2took the simple yet beloved story from the first outing to a new level, with greater stakes and several new character additions. Who could forget that epic final battle scene, too? 20 years after its release,Shrek 2remains the franchise’s crowning achievement. Let’s take a look at just what makes it so special.

Shrek 2 Is Another Great Fairy Tale Adventure
Shrek 2opens directly after the first installment, with Shrek and Fiona enjoying their honeymoon together. Fiona’s parents, King Harold and Queen Lillian, then invited them to the kingdom of Far Far Away to formally celebrate the marriage. The appearance of Shrek shocks the king and queen, who assume that Prince Charming has rescued and married Fiona. Later, a dinner turns into a fight between Shrek and Harold, with Fiona storming out.
It’s revealed that Harold made a deal with Fiona’s “Fairy Godmother” and promised Fiona would marry Charming. To get Shrek out of the way, Harold lures him and Donkey into the woods, wherePuss in Bootshas been hired as a hitman. Puss is no match for Shrek, and he quickly offers to join them as an ally. The three break into Fairy Godmother’s factory to steal a love potion Shrek believes will make him good enough for Fiona. They escape while Shrek and Donkey drink the potion and turn into a human and stallion horse. Shrek returns to the castle, but Prince Charming passes himself off as the human Shrek to Fiona, who was also transformed back to a human by the potion.

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Shrek leaves, but he, Donkey, and Puss are captured by the palace knights. The fairytale creatures from back home see this on the Magic Mirror and bust them out of jail, where they all proceed to storm the castle where Fiona and Charming are set to be married. They break in, but Charming kisses Fiona at midnight as per fairytale law. It does not work, as Harold does not give Fiona an intended love potion after having second thoughts.
The Fairy Godmother tries to fire at Shrek with her wand, but the bolt bounces off Harold’s armor when he jumps in front of Shrek. It ricochets back at Fairy Godmother, who evaporates into nothing. Harold also reverts to a frog, revealing that the Fairy Godmother turned him human years ago to win the heart of Lillian. The king and queen accept Shrek, and he and Donkey return to their normal selves. All’s well until the next movie.

The New Characters and Settings of Shrek 2
For as iconic as it is,the firstShrekwas rather bare-bones compared to what came after. The only primary characters were Shrek, Donkey, Fiona, and Lord Farquaad. Most of the action takes place at Fiona’s castle or the kingdom of Duloc. This isn’t a bad thing, as it allows the bulk of the focus to be on Shrek and Fiona as they develop their bond without outside influences.
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However, there was so much potential to see what else was out there.Shrek 2takes full advantage, incorporating several new characters and settings. Most of the action moves to the glamorous Far Far Away, the extravagant kingdom ruled by Fiona’s parents. The most notable new addition is Puss in Boots, an antagonist for about 2 minutes before joining Shrek’s crew as an ally and friend. We also meet perhaps the greatest villain inShrekhistory in the Fairy Godmother. While Lord Farquaad was over-the-top in his bad deeds, Fairy Godmother hides her nefarious intentions under a cheery smile and the guise of making one’s wish come true.Prince Charming is also an adversary, though concerned mostly with his own appearance and marriage with Fiona over any actual evildoing. He later inherits his mother’s ruthlessness when he’s upgraded to the main antagonist in the third movie.
Shrek’s Love for Pop Culture References
Because it’sShrek, there are pop culture references (some more inappropriatethan others) galore.Far Far Away is a not-so-subtle parody of the glitz and glamour of Los Angeles and Hollywood. Shrek, Donkey, and Puss' capture by the kingdom’s knights serves as a hilarious parody of theCopsTV show. The knights follow a white Bronco (Donkey in horse form) from the air, confiscate catnip from Puss, and even use a pepper mill on Shrek in lieu of pepper spray.
Shrek 2gives us perhaps the greatest final battle in franchise history, with Shrek, Donkey, Puss, and more storming the castle while Fairy Godmother belts Bonnie Tyler’s “Holding Out for a Hero.” Over the ending credits, Puss and Donkey serenade a reunited Shrek and Fiona with Ricky Martin’s “Livin' la Vida Loca.” The DVD and VHS (yes, it’s old) releases feature the interactiveFar Far Away Idolsinging competition, with Simon Cowell on hand as his own voice.

The familiar fairytale creatures from the first outing are back, each spoofing the characteristics of their original stories. The Fairy Godmother places a sinister spin on the fairytale stock creature, while Prince Charming is your typical vapid mama’s boy. Mike Myers, Eddie Murphy, and Cameron Diaz’s vocal performances are on point once again, with Antonio Banderas, John Cleese, Julie Andrews, and Jennifer Saunders proving worthy additions to the cast. There’s so much to love about theShrekfranchise andShrek 2in particular. In living up to those standards,Shrek 5has its workcut out for it.Shrek 2is streaming onPeacock.