Shrek gets in the Halloween spirit by challenging his fairytale friends to come up with scary stories for a contest. But the gang learn that theyll have to spend the night in Lord Farquaads haunted castle before the winner is named.

It is Halloween night, and Shreks family is celebrating by scaring trick-or-treaters. Inside their house, Donkey, Pinocchio, The Three Little Pigs, Wolf and Gingy fail to scare the ogres, and Shrek claims that nothing can scare an ogre. 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 Farquaads abandoned castle. 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. 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 and decides to go home, but ends up being eaten by loads of his love. The Three Little Pigs get scared and run away with Wolf who claims they are his ride. Shrek comments on the falsehood of Gingys true story, and he runs off as well.