It is Halloween night and Shrek's family is celebrating by scaring trick-or-treaters. Inside their house, Donkey, 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.
The Bride of Gingy[]
Gingy starts first with a story about his girlfriend dumping him and asking the Muffin Man for a new girlfriend, made with loads of sugar, thus giving her the name "Sugar" as revealed in the credits. Gingy becomes happy with her but ends up becoming freaked out of all her love for him. After running away and pushing her in a big container of batter, he finally becomes free of her, unaware that the batter Sugar was dropped in ended up created thousands of zombie clones of herself, surrounding Gingy and eating him. The Three Little Pigs get scared and run away with the Big Baf Wolf who claims they are his ride. Shrek comments on the falsehood of Gingy's "true" story, saying that he cannot be there if he is eaten, and he runs off as well.
Boots Motel[]
Next, Donkey and Puss tell a story about them taking shelter from a thunderstorm at Boot's Motel (a parody of the Bates Motel from Psycho). Their story starts off well, but they end up arguing over how the story should be told, and then resort to just make each other look bad. Donkey gets Pinocchio to spray Puss with water, making him run away.
The Shreksorcist[]
At last, Shrek tells the final story about him as a baby-sitter trying to sort out a crazed, seemingly possessed, Pinocchio, but after continuously getting beaten up by the living puppet, Shrek tries to catch him but Pinocchio jumps out of the window. After landing on the streets, a talking cricket pops out of Pinocchio's head, claiming to be his conscience and the voice in his head that made him go crazy, only to be squashed under Pinocchio's foot.
Pinocchio denies that the story is true, but when Shrek shows him a normal cricket, he screams and runs out. Now alone, Donkey and Shrek hear the wind moving about, and a walking suit of armour calling Donkey's name. It supposed to be the ghost of Farquaad, come to take revenge. Scared out of his wits, Donkey admits defeat and runs away. Fiona reveals it was her and the babies who planned the ghost act and then they, along with Shrek, celebrate by egging the Seven Dwarves.
