Plot
Sometime after the events of the third film, Shrek is living in his swamp with his family while Donkey constantly makes early Christmas announcements, much to Shrek’s annoyance. When the Christmas season arrives, Shrek reluctantly promises Princess Fiona a special Christmas surprise under Donkey’s urging. Shrek goes to a bookstore in Far Far Away to try to find a present for Fiona, but because he does not actually know what Christmas is about, the shopkeeper gives Shrek a copy of Christmas For Village Idiots, a guide to celebrating the holiday. Shrek proceeds to follow the book's advice by decorating the house and finding a tree so he can spend a quiet Christmas Eve with his family, but Donkey brings the entire "family" to the swamp, ruining Shrek's plans.
When Shrek tries to recite "The Night Before Christmas", Donkey, Puss in Boots, and Gingy interrupt and each tell their own Christmas story. Donkey tells of a Christmas parade passing by the swamp and licking an animatronic Santa Claus that is made of waffles, and absentmindedly starts licking Shrek. Puss' story ends with playing with the tassel on Santa's hat, while in reality he is playing with a bauble. Gingy tells a story about how his girlfriend, Suzy was eaten by Santa Claus. When Donkey finds Shrek's book, a fight breaks out over the book and Shrek's dinner is destroyed. After lighting his butt on fire, Shrek loses his temper and kicks his friends out of his house.
With their Christmas spirit ruined, Fiona is upset with Shrek's behavior and leaves with the ogre triplets to apologize. Shrek, remorseful at what he has done, catches up with his friends and apologizes for lashing out at them. When he reveals that he has never celebrated Christmas or anything, Donkey starts to feel remorseful for disturbing him and jeopardizing his first Christmas. They return to the swamp where Shrek’s friends are getting ready for bedtime. When they beg Shrek to tell them a bedtime story, he tells his version of "The Night Before Christmas". Soon, they hear bells and go outside to see Santa and his reindeer, although Gingy, still afraid of Santa, runs back inside. The special ends with Santa using magic to put ogre ears on the moon.