Sometime after the events of the third film, Shrek Mike Myers is quietly living in the swamp with his family as the Christmas season arrives. On Donkey’s insistence, Shrek promises Princess Fiona Cameron Diaz a special Christmas surprise, and he heads to the local bookstore in Far Far Away to find a gift. Lacking any real sense of what Christmas means, he’s handed a curious manual titled Christmas For Village Idiots by the shopkeeper, the Bookstore Clerk Marissa Jaret Winokur. The book describes Christmas step by step, and Shrek begins to follow its advice to decorate the house and erect a tree in the hopes of enjoying a peaceful Christmas Eve with his family.
But Donkey brings the entire “family” to the swamp, inadvertently sabotaging Shrek’s quiet plan and turning the night into a whirlwind of festive chaos. As Shrek tries to recite A Visit from St. Nicholas, interruptions erupt from his friends: Donkey, Puss in Boots Antonio Banderas, and Gingy Conrad Vernon each spin their own Christmas tale. Donkey recounts a parade rolling through the swamp and a comically enormous waffle Santa, even as he absentmindedly licks Shrek’s foot. Puss’s version of the Santa legend ends with him teasing the tassel on Santa’s hat, while he’s really playing with a bauble. Gingy tells a chilling story about how his girlfriend Suzy was eaten by Santa Claus, a tale that leaves the others rattled and uneasy.
The mood shifts when Donkey dismisses the darker retellings as ridiculous and uncovers Shrek’s Christmas for Village Idiots book, sparking a heated quarrel that destroys Shrek’s supper. In a moment of ridiculous desperation, Shrek lights his own butt on fire and explodes in anger, ejecting his friends from the house. Donkey, in the heat of the moment, calls him “Ebenezer Shrek.” Fiona is upset by the outburst and leaves with the ogre triplets, chasing after their friends to explain what Shrek had hoped to give them for Christmas.
Feeling remorseful, Shrek catches up with the group and apologizes for his outburst. He explains that this would have been his first Christmas, since ogres don’t typically celebrate, a sentiment that gives Donkey a new perspective and prompts him to apologize for crowding Shrek and his family’s moment. The forgiveness rekindles the atmosphere, and they return to the swamp. Shrek then offers his own version of The Night Before Christmas, recasting himself as “Ogre Claus” and weaving warmth into the night’s celebration.
As bells ring and the crowd steps outside, Santa Gary Trousdale and his reindeer appear, bringing a final sense of wonder to the evening. Gingy, still wary of Santa, dashes back inside out of fear, while the magic of the moment dawns on everyone. The short closes with Santa using its magic to place ogre ears on the moon, sealing the night with a playful, dreamlike finale that leaves Shrek, Fiona, Donkey, and their friends with a quiet, cherished sense of holiday belonging.
