In a field, Princess Fiona grabs a spider's web and gathers up the flying bugs bothering Shrek, giving it to him, who eats it like cotton candy. Shrek catches a frog and inflates it like a balloon, handing it to Fiona. Fiona grabs a snake off a tree branch and inflates it like a balloon, and gives it to Shrek. They push each other playfully, then run off together, and their balloons float away into the air. At the swamp, Shrek and Fiona get married, with Donkey and all the fairy tale creatures as guests. The wedding song is "I'm a Believer", by Smash Mouth. One of the fairy godmothers transforms the three blind mice into horses, and a garlic bulb into a carriage, and then Shrek and Fiona leave in the carriage. Donkey takes over the song, with the others singing and dancing. The wedding celebration continues while Shrek and Fiona ride away into the sunset.

The fairy tale ends with "And they lived ugly ever after. The end." The book closes, revealing the fairy tale to be "Shrek", and the song ends.Donkey, afraid to be alone by himself in the dark, goes inside the windmill looking for Princess Fiona. A large green hand grabs the ladder, and then a female ogre looks down on Donkey as he wanders around. All the sights and sounds frighten Donkey. The ogre falls through the wood and screams as she lands on the floor, frightening Donkey even more. He's terrified when she stands up, and he screams for Shrek. Donkey asks her what she did with the princess. She tries to calm and quiet him down, saying that it's her, in this body. He thinks that she ate the princess and shouts at her stomach, then calls for Shrek again. She finally calms him down and convinces him that she is the princess. He wonders what happened to her, telling her that she's... different. She admits that she's ugly. Donkey thinks it's because she ate the weed rat, but she tells him that she's been this way as long as she can remember. She says that it only happens when the sun goes down. She looks at her reflection in a barrel of water and recites a spell: "By night one way, by day another. This shall be the norm until you find love's first kiss and then take love's true form." She tells Donkey that when she was a little girl a witch cast a spell on her; every night she becomes "this, this horrible, ugly beast"; she was placed in a tower to await the day her true love would rescue her. Fiona sits down and tells Donkey that it's why she has to marry Farquaad tomorrow before the suns sets and he sees her like this. She cries, and then Donkey tries to console her. He says that she's ugly, but adds that she only looks like this at night, and that Shrek is ugly all the time. She replies that she's a princess, and it's not how a princess should look. Donkey suggests that she shouldn't marry Farquaad. She insists that she has to, because only her true love's first kiss can break the spell. Donkey tells her that she's an ogre, and Shrek's an ogre, and that they have a lot in common. At his castle, Lord Farquaad is in bed with a drink and repeatedly makes the Magic Mirror show him the picture of Princess Fiona. He says that she's perfect.