Taking place after the 3D animated movie of the same name, the game allows the player to control Shrek, a huge green ogre, as he must rescue Princess Fiona from the evil wizard Merlin while finding his way through worlds full of crazy twists on familiar fairy tale characters. In this third-person action platformer, Shrek bashes and burps his way past various challenges, fighting creatures and collecting items to complete Good Deeds and unlock new levels.

Each world features six missions to complete save for Merlin's castle and two of the missions in every regular level involve either collecting hidden Easter Eggs or grabbing the evil fairies who run away as you approach. Other missions in a stage can involve tasks like defeating a boss or transporting characters to their destinations.