Shrek 2 sees a return of those oddball characters from the first movie in addition to a collection of even stranger characters. The King and Queen have finally learned of their long lost daughter, Princess Fiona, and how she has found the love of her life. Assuming that Princess Fiona is now free of her ogreish curse they decide to hold a royal ball in honour of the happy couple. Of course they do not know that Princess Fiona is still in her ogreish form and that her husband is himself an ogre. Shrek doesn't want to go to the ball but Princess Fiona manages to convince him and the game begins with Shrek, Princess Fiona, Gingerbread Man and Donkey setting out on their journey.

Shrek is joined by a host of characters such as Princess Fiona, Gingerbread Man, Donkey, Puss in Boots, Lil' Red, Big Bad Wolf and Fairy and each character comes with their own special ability and fighting style.