If you follow me on Twitter you know my daighter's new favorite movie that we watch at least 5 times a day is Shrek The Halls!
Shrek proceeds to follow the book's advice by decorating the house and getting a tree so he can spend a quiet Christmas Eve with his family, but Donkey brings the entire "family" to the swamp, ruining Shrek's plans.
As Shrek tries to tell his own version of "A Visit from St. Nicholas (The Night Before Christmas)"; Gingy, Donkey, and Puss in Boots interrupt and each tell their own version of a Christmas story. Donkey tells of floats coming to the swamp. At the end, Donkey tells of licking an enormous Santa figure that is made out of waffles, but in reality he accidentally starts licking Shrek's leg. Puss tells his version of the story of Santa Claus, but ends up playing with the ball point of his Santa hat, while in reality he is playing with one of the baubles from the christmas tree. However, Gingy's story is not happy, but horrifying, as he tells about how his girlfriend Suzy got eaten up by Santa Claus. To which Donkey finds it unbelievable, with Gingy screaming "You weren't THERE!!".
Donkey finds Shrek's Christmas for Village Idiots book, and the ensuing fight over the book destroys all of Shrek's decorations, furniture and the tree. Shrek ends up ejecting his friends from the house.
Christmas spirit ruined, Fiona and Shrek have a talk, after which she takes the children and leaves the swamp to go and apologize to their friends. Shrek feels downhearted that Christmas Eve didn't go as he hoped it would.
Fiona catches up to their friends and explains to Donkey what Shrek had wanted for Christmas. Shrek catches up with the group, and apologizes for losing his temper. Donkey is shocked to learn that this is Shrek's first Christmas, because "ogres don't celebrate anything." Donkey also apologizes for being annoying, and explains that Christmas never goes as planned and according to his mother, "'Christmas ain't Christmas until somebody cries', and that's usually me."
After a snowball fight, the friends return to the swamp, and Shrek tells his story, featuring not Santa, but Ogre Claus. Soon they hear bells and go outside to see Santa and his reindeer, although Gingy runs back inside screaming in terror.