The Munchkins are workers at Fairy Godmother's Potion Factory. They are seen wearing hazmat suits, and are never seen outside of them. Thus, all of them are impossible to tell apart. Their species name derives from the children's book The Wonderful Wizard of Oz.
Shrek 2[]
The munchkins are workers at the Potion Factory. Many of their duties include testing the potions of various animals, storing and shipping the potions, and controlling contraptions that produce large doses of potions. Some of them also provide food and beverage service for Fairy Godmother, including Monte Cristo and coffee.
When Shrek is told that he can't live "happily ever after" by Fairy Godmother, he tries to steal a potion to make Fiona happy. He does this by stealing a munchkin's hazmat suit, and pushing a cart while trying to greet the other workers. When stealing the Happily Ever After potion, a munchkin and an elf notice Shrek, Donkey and Puss in Boots stealing it and alert the other workers. When Shrek pours a giant dose of a potion onto the works, two munchkins are turned into a clock and candelabra from The Beauty and the Beast.