It is Halloween night, and Shrek's family is celebrating by scaring trick-or-treaters. Inside their house, Donkey, Puss, Pinocchio, the Three Little Pigs, Big Bad Wolf, and Gingy fail to scare the ogres, and Shrek claims that nothing can scare an ogre because ogres are "the kings of Halloween". To prove him wrong, Donkey proposes a challenge to see who can tell the scariest story, but Shrek amps it up by choosing to hold their contest in Lord Farquaad's abandoned castle Duloc.