Donkey suggests everyone sing Christmas carols. Donkey sings "It's the Most Wonderful Time". Shrek, Fiona, the Ogre children, and the army of ogres sing an ogre version of "Jingle Bells" (i.e. "Bug Cocoon, Lick the spoon. Try our cricket slurp). Puss in Boots sings "Feliz Navidad", although he titles it "Fleas Navidad". Then everyone sings "Jingle Bell Rock", but they title it "Fairy Tale Rock".

When his new father-in-law, King Harold falls ill, Shrek is looked at as the heir to the land of Far, Far Away. Not one to give up his beloved swamp, Shrek recruits his friends Donkey and Puss in Boots to install the rebellious Artie as the new king. Princess Fiona, however, rallies a band of royal girlfriends to fend off a coup d'etat by the jilted Prince Charming. - When Fiona's father and King of Far Far Away passes away, the clumsy Shrek becomes the immediate successor of the throne. However, Shrek decides to find the legitimate heir Artie in a distant kingdom with his friends Donkey and Puss in Boots to be able return to his beloved house in the swamp with the pregnant Fiona. Meanwhile, the envious and ambitious Prince Charming joins the villains of the fairytales plotting a coup d'état to become the new king.

Ordered to teach a martial arts class of rambunctious bunny kittens, Po tells stories of each of the Furious Five's pasts. With Po's status as the Dragon Warrior proven to all, Master Shifu has a new challenge for him; teaching Introduction to Kung Fu class to a bunch of a rambunctious bunny children. After getting the class to come to order, Po teaches them that fighting is only part of kung fu, while its true meaning is "Excellence of Self." To explain this philosophy, Po tells stories of each of his comrades, The Furious Five, and how they faced formative challenges in their youth that helped define them as true masters of kung fu.

Puss in Boots returns with the help of three kittens to rescue a precious ruby from the evil Whisperer. The infamous French thief The Whisperer has stolen a princess' ruby and Puss in Boots is on a mission to recover the precious stone. But Puss must somehow first tame The Three Diablos, three cute little kittens who were The Whisperer's henchmen, before they endanger the mission in this purrfectly charming comedy adventure.