Love Shrek??  Here are some fun Shrek party ideas, including... invitations, decorating, menu, activities, party favors, and Shrek party supplies for planning a fun Shrek party, just like a fairytale!

Invitations

Using "Old English" font, print the invitation on yellowed parchment stationery... "Here Ye, Here ye, your presence has been requested for the birthday celebration of (Prince/Princess -child's name)"  or "In a land far, far away we will celebrate (child's name) birthday with Shrek!", add time, place, "RSVP to the Queen (your phone number)"... you can also at this point, singe the edges with a lighter...(do this over the sink).  Roll each invitation and tie with twine or ribbon.  Deliver in person.

Decorations

Set the scene:  castles, forests, swamps, a land far, far away...
Decorate with hunter green and orange helium balloons...
Tie twine from one side of the room to the other and hang tattered dark colored clothing on it to resemble Shrek's swamp home...
Create a standup with paint and lumber to resemble a castle...or a standup of Shrek with his face cutout for the guest to put his/her head through for a really fun photo op! 
Create Lord Farquaad's castle with oatmeal containers...paint to resemble his castle.. see www.shrek.com , display small figures of the characters around the castle and use for a centerpiece.

Morsels

Feast for an ogre! Bucket of chicken legs...
ants on a log
Gingerbread Man cookies
"Happily Ever After" potion

Activities

Play 'Shrek" charades!  write down characters from the movie, ie:  Shrek, Fiona, Donkey, Pinocchio, Three Blind Mice, Puss in Boots, Dragon, Gingerbread Man, etc. unto small pieces of paper. Fold and put all in a hat.  Next, have players choose a paper from the hat. see rules for charades.

Shrek2.com also has many downloads for activity sheets and games...

Dragon or castle pinata

Pin the tail on Donkey!

Shrek or Shrek 2 movie showing

Party Favors

purchase iron-on paper and ahead of time, go to http://www.shrek.com/main.html , and print a design to make each guest a t-shirt.

Shrek ears (see Shindigz.com link above)

bag of homemade slime (not to eat!!!)

gummy worms

Shrek stickers, fruit snacks, figurines...

Click above for these great Shrek cupcake decorations!