Shrek and Fiona embrace one another, but Prince Charming gets the wand and tosses it to the Fairy Godmother and she proceeds to turn on Shrek, telling once again that ogres don't live happily ever after. She then sends a blast of magic out to kill Shrek. Harold uses his armor to deflect the spell which bounces off and hits her. Fairy Godmother disappears, with only her glasses and wand left. Harold is back to his true form, a frog. Shrek and Fiona are about to kiss, but Fiona tells Shrek she wants to live happily ever after, with the ogre she married. Shrek, Fiona and Donkey return to their true forms. Harold apologizes to Shrek and tells him that he only wanted Fiona to be happy. He gives the couple his blessing and goes to leave, however Queen Lilian tells him that she still loves him, even though he's a frog. That night, the gang dance into the night, having a big party.
After the party, Donkey is all alone, singing a song. Puss and two girls are about to head off to the "Kitt Katt Klub" when Dragon comes and tells Donkey that she has had babies. Donkey and Dragon are now proud parents of a litter of mutant dronkeys - donkey/dragon hybrids.
