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Shrek takes a mud bathe after which travels into the woods to hold up signs to keep individuals away from his land. Shrek decides to travel the nation to see Lord Farquaad attempt to regain his privacy, but an lively and talkative donkey named Donkey who escaped from guards who went after him, and was saved by Shrek, tags along. The two make it to Farquaad 's palace in Duloc and are available across a knight tournament to determine who will rescue Princess Fiona from a citadel surrounded by lava and protected by a fire-breathing dragon so that Farquaad might marry her. Shrek and Donkey easily greatest the other knights, and Farquaad agrees to nullify his order if Shrek goes on to rescue Fiona , a deal that Shrek agrees to.