In the X-Box version, a local dragon festival is being held in honor of the Red Dragon. Due to the preparations, planning has caused some issues to arise. A young dragon catches a cold, the moat was drained leading to fish without any water, and several baby dragons were set loose. With only his fire breathe and a boy's kiddie pool, Shrek does his best to perform good deeds to help the festival move forward according to plan. Unfortunately for everyone at the castle, the dancing cow returns to disrupt the festival.
In the GameCube version, Shrek heads to the Blue Dragon's castle. He was sent by the Crown Prince in order to lure the dragon away from the palace. The key difference for the missions in this version is that the happenings are caused by the presence of the Blue Dragon. Once peace is restored, Shrek gets helpful items (including the crystal ball and a dragon's apple) from the dragon so he can defeat Merlin.