In "Shrek 2," the story continues as Shrek and Fiona return from their honeymoon to find an invitation from Fiona's parents, the King and Queen of Far Far Away. They travel to meet them, but Shrek feels insecure about being an ogre in a royal setting. Upon arrival, Shrek faces challenges, including the charming Prince Charming and the meddling Fairy Godmother. With the help of his loyal friend Donkey, who transforms into a Dragon, Shrek learns the importance of love and acceptance, ultimately proving that true beauty comes from within.