Participants are led into a dungeon-like room with two giant television screens on either side. On the screen, the ghost of Lord Farquaad, who escaped the mouth of the dragon, announces that he has kidnapped the Three Little Pigs, Gingerbread man, and Pinocchio and is holding them hostage. He says that he will torture everybody for answers. After a brief tutorial safety tips ("You have been warned!") from the magic mirror, who told the participants the story of what happened before, the cinema doors are opened and people take their seats.
The short film takes place right after the first Shrek film. In it, the spirit of Lord Farquaad returns from the dead to kidnap Princess Fiona. Therefore, it is up to Shrek and Donkey to rescue her. Farquaad sends a stone dragon after them, but Dragon arrives, leading to a chase scene, ending with the stone dragon losing its wings against the walls of a hole and falling into the water below. Farquaad sends Fiona on a raft to fall over the waterfall (with Thelonious still on it, not realizing he was supposed to get off). Shrek and Donkey arrive to rescue her. In the end, all four of them fall over the waterfall, but are saved by Dragon. Dragon then breathes fire at Farquaad, destroying him.
Although the animation is 3-D, the ride is a 4-D film, which means it is designed to make viewers feel what they are watching. For example when Donkey sneezes, the front of the seats spray mist into viewers' face. It also has movable seats, air jets and rubber tubing, to simulate other effects such as air, "creepy crawlies" and other movements.