Prince Charming vows that he will become King of Far, Far Away and avenge the death of his mother, the Fairy Godmother. Meanwhile, King Harold is dying and his ogre son-in-law Shrek and daughter Princess Fiona are to succeed him. Shrek’s attempts at trying to serve as the Regent during the King’s medical leave end in disaster, and insists that an ogre as king is a bad idea and that there must be someone else to rule the kingdom. Before dying, Harold tells Shrek of another heir: his nephew, Arthur Pendragon. Prince Charming goes to the Poison Apple tavern and persuades fairy tale villains to fight for their “happily ever after” by appealing to the defeats given in their stories.
Shrek, Donkey and Puss in Boots set out to retrieve Arthur; as they are sailing away, Fiona yells to Shrek that she is pregnant. The trio journey to Worcestershire Academy, an elite magical boarding school, where they discover Arthur or “Artie” is a scrawny 16-year-old underachiever picked on by everyone. At the school pep rally, Shrek tells Artie he is going to be king of Far Far Away. Artie is excited until Donkey and Puss inadvertently frighten him by discussing the responsibilities of being king. Artie tries taking control of the ship and crashes it on a remote island, where they meet Artie’s retired wizard teacher, Merlin.