Master Oogway finds Spike near the peach tree after going for a walk, he learns that he was called by the universe to help the future Dragon Warrior with his battles, and he takes him in and trains him to fulfil his destiny.
The Mane Six and Spike venture through the multiverse to a swamp in the midst of a fairytale kingdom. It is here they meet Shrek and Donkey who they accompany on a mission to rescue a princess from a dragon guarded tower.