After stopping to camp at an old mill, Shrek and Fiona make dinner and almost share a kiss. Throughout the rest of the trip back Fiona warms up to Shrek and Donkey, and Shrek begins to fall in love with Fiona. Despite some difficulty, Fiona manages to remove the arrow and they continue their journey. After the fight, Fiona notices an arrow in Shrek's butt and orders Donkey to find a blue flower with red thorns just to get rid of him.
The next day, the trio continue on to Duloc and encounter the Merry men, where Fiona reveals her impressive martial arts skills. That night, Shrek and Donkey bond while stargazing, and Shrek confides in Donkey that he chooses to live alone because most people (except Donkey) prefer to fear and stereotype him rather than try to get to know him. Shrek appears not to care and takes Fiona by force to Farquaad.Īs nightfall approaches, Fiona demands they stop for the night, but secludes herself in a cave for reasons unknown. Fiona insists that Shrek take his helmet off so that he may kiss her, but is dismayed by the fact that her supposed true love is actually an ogre. They are chased by Dragon through the castle, but narrowly escape after Shrek cleverly traps it. With Fiona in tow, Shrek rushes to go back and rescue Donkey. Disguised as a knight Shrek is mistaken by Fiona to be her Prince Charming, though Shrek is all but chivalrous and romantic. While Donkey keeps the dragon occupied, Shrek meets Princess Fiona for the first time.
Donkey inadvertently awakens the dragon and Shrek is forced to fight it, only to be flung by its tail right through the roof of the tallest tower. Having read a storybook earlier, Shrek guesses that the princess is likely to be "up the stairs in the highest room in the tallest tower". Once inside, Shrek puts on armor found on the bones of unsuccessful knights and orders Donkey to find stairs while Shrek himself searches for the Dragon. But first, Shrek and Donkey have to cross the only rope bridge to the castle hanging precariously over a lake of lava. Shrek agrees and the duo set out on a journey to the Dragon's Keep Fiona is locked away in a castle, guarded by a fire-breathing dragon. When he wins, this intrigues Farquaad and he cuts a deal with Shrek: If he rescues his princess, he will give Shrek's swamp back. Farquaad declares that the knight who kills Shrek will become champion, but Shrek easily defeats all of Farquaad's knights with the help of Donkey. Upon arriving at Duloc, Shrek interrupts a tournament being held by Farquaad to determine which knight he will send to rescue Princess Fiona for him. Outraged, Shrek takes Donkey and goes to his castle to demand his swamp back. Shrek demands to know why they have come and learns that Lord Farquaad has dumped them all there. However, more fairy tale creatures soon arrive and begin to overcrowd his swamp. A grateful Donkey thanks Shrek repeatedly (to the latter's irritation) and convinces him to spend the night outside of Shrek's house. The Captain of the Duloc Guards orders Shrek to be arrested, but Shrek effortlessly scares them off and saves Donkey. One day in the forest, a talking Donkey enters Shrek's territory pursued by a group of Duloc guards.