Set during Christmas 1988, Lol is haunted by the devastating events that took place two and a half years before. She and Woody both find themselves struggling to cope with their lives without each other after he leaves the gang. Lol is carrying the burden of her guilt, whilst Woody is trying to build a domestic life with a new girlfriend and a potential promotion at work. Shaun has started drama college and, although still in a relationship with Smell, he has grown close to a girl performing in his Christmas play.
Mumble the penguin has a problem: his son Erik, who is reluctant to dance, encounters The Mighty Sven, a penguin who can fly! Things get worse for Mumble when the world is shaken by powerful forces, causing him to brings together the penguin nations and their allies to set things right.
Long before he even met Shrek, the notorious fighter, lover and outlaw Puss in Boots becomes a hero when he sets off on an adventure with the tough and street smart Kitty Softpaws and the mastermind Humpty Dumpty to save his town.
There is a new criminal mastermind at large--Professor Moriarty--and not only is he Holmes’ intellectual equal, but his capacity for evil and lack of conscience may give him an advantage over the detective.