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Act I
Shrek's parents kick the seven-year-old ogre out of their house and into the cruel world("Big Bright Beautiful World"). They warn him that because of his looks, everyone will hate him, and he won't have a happy ending. Later, a now embittered, hardened Shrek is living contentedly alone in a swamp. But his solitude is disrupted when all the fairy-tale beings of the land begin showing up on his property, exiled from the Kingdom of Duloc by order of Lord Farquaad ("Story of My Life"). Shrek decides to travel to see Farquaad to try to regain his privacy ("The Goodbye Song")and along the way reluctantly rescues a talkative Donkey from some of the Lord's goons. The donkey insists on tagging along ("Don't Let Me Go"). Meanwhile, similarly outcast seven-year-old Princess Fiona dreams of the brave knight who, her story-books tell her, will one day rescue her from her tower, and end her mysterious curse with True Love's Kiss. As she grows into a teenager, and then a headstrong woman, she never loses her faith in her fairy tales ("I Know It's Today").
Shrek and Donkey arrive in Duloc and make their way to Farquaad's palace, disrupting a kingdom-wide lottery to choose the "brave kinght" who will finally rescue Princess Fiona from her castle (surrounded by lava and protected by a fire-breathing dragon,) so that Farquaad may marry her and thus become a legitimate King ("What's Up, Duloc?"). Shrek impresses Farquaad with his size, appearance, and "expendability," and the ogre agrees to undertake the rescue in exchange for the deed to his swamp.
Shrek and Donkey set off to find Fiona ("Travel Song"). Arriving at the castle, Shrek sets off alone to rescue Fiona while Donkey encounters the guardian she-Dragon, who sees him as a tasty snack ("Donkey Pot Pie"). Donkey charms the fire-breathing creature by complimenting her teeth, and escapes death momentarily. When Shrek finds Fiona, his lack of interest in playing out her desired, romantic rescue scene annoys her, and Shrek must drag her off by force. The two of them reunite with Donkey and all three attempt to leave, angering the dragon, who chases Shrek, Fiona and Donkey out of the castle ("This is How a Dream Comes True"). Once they are safe, Fiona insists that Shrek reveal his identity. She is appalled that her rescuer is an ogre, and not the human prince her stories promised. Shrek explains that he is merely her champion; instead, she is to wed Lord Farquaad. As the trio begins their journey back to Farquaad's palace, the Princess is frightened by the setting sun and insists that they rest for the night and that she spend the night, alone, in a nearby cave. Donkey and Shrek remain awake and Donkey, delighted at being referred to by Fiona as a "noble steed," asks Shrek who he would be, if he didn't have to be an ogre anymore ("Who I'd Be"). As Shrek opens up to his new friend, Fiona stands apart and alone, transformed into an ogre by the moonlight.
Act II
The next day, Princess Fiona admits to being a "Morning Person" as she assists a Pied Piper in his rat-charming duties. Shrek brings down her mood by mocking her tragic childhood circumstances, and the two begin a contest of one-up-man-ship, each trying to out-do the other by revealing their respective pasts ("I Think I Got You Beat"). Both admit to abandonment at the hands of their parents; this connection, as well as bonding over a love of disgusting bodily noises, kindles friendship.
Meanwhile, back in Duloc, Lord Farquaad plans his wedding, and reveals his own sordid heritage in "The Ballad of Farquaad." As Shrek and Fiona's new-found camraderie grows into love, Donkey insists (with the help of the Three Blind Mice) that Shrek gather his courage and "Make a Move". Shrek, finally beginning to come out of his caustic, protective shell, tries to find the words to explain his feelings to Fiona ("When Words Fail"). While Shrek is out finding a flower for Fiona, Donkey discovers that Fiona turns into an ogress at night, and she confesses that she was cursed as a child, which is why she was locked away in the castle. Only a kiss from her true love will return her to her proper form. Shrek arrives near the end of the conversation and misunderstands Fiona's description of herself as an "ugly beast" to be referencing him. Hurt by her presumed opinion, Shrek stalks off. The next day, transformed back to her human form, Fiona tries to explain her curse to Shrek, who rebuffs her ("Morning Person Reprise"). Donkey tries to explain the misunderstanding to Shrek, who rejects the animal as well, declaring that he will return to his swamp alone and "Build a Wall" against the outside world, never allowing himself to feel love again. During the night, Shrek went to fetch Lord Farquaad, who arrives now to claim Princess Fiona.
The fairy-tale creatures, now headed for a land-fill which is to be their new home, decide Farquaad's treatment of them is intolerable. Just because they are freaks, doesn't mean they deserve to be hated. Pinocchio, the GingerBread man, the Three Little Pigs, and the others, gather new confidence and strength as they declare they'll raise the "Freak Flag" high against their persecutors.
Shrek returns to his again-private swamp, but he misses Fiona. Donkey follows him back, and convinces Shrek of his friendship by forgiving the ogre for his harsh words. Shrek apologizes, and Donkey convinces him that Fiona really cares for the ogre. But the wedding is already underway. The duo interrupt the wedding before Farquaad can kiss Fiona, and Shrek is allowed to speak with her. Shrek finally finds the words that he's been searching for, and declares his love for Fiona, and his desire to share the "Big Bright Beautiful World" with her ("Reprise"). His declaration of love is mocked by Lord Farquaad, but just then the exiled fairy-tale beings crash the wedding and protest their banishment. During the commotion, the sun sets, causing Fiona to turn into an ogress in front of everyone. Farquaad, furious and disgusted over the change, orders Shrek and Fiona killed, but the lady-Dragon crashes through the window and swallows Farquaad. Shrek and Fiona admit their love for each other and share a kiss; Fiona's curse is broken and she takes her "true form": an ogress. She is ashamed of her looks, but Shrek declares that she is still beautiful. The two live happily ever after ("Finale").
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