Even Better Sequel: It not only has the same Rotten Tomatoes score as the first one, it's generally considered to be better-paced, funnier, and much more exciting than the original. The movie is also loved for introducing Puss in Boots, possibly the most beloved character in the series next to Shrek himself.
Fanon: Though not outright confirmed, many fans believe the Fairy Godmother and the Witch who cursed Fiona to be one and the same, adding to the depths of the Godmother's complex machinations.
Harsher in Hindsight: It stands to reason that Shrek would be pissed about King Harold suggesting ogres eat their own young, as it's revealed in the next film that Shrek's father actually DID attempt to eat him many times as he grew up.
In the menu, Shrek responds to Donkey's suggestions for subtitles for the movie by sarcastically suggesting it be called Shrek 2: Dude, Where's My Donkey?! (and more) but it doesn't go anywhere. Then along came the third Nativity! movie, which unironically used that as its subtitle.
Shrek is disgusted by a poster of "Sir Justin" (who looks like Justin Timberlake) on Fiona's ceiling. Come the third movie, where a teenage King Arthur is played by... Justin Timberlake. For bonus hilarity points, they bond.
One of the jokes MAD made about the first movie was Donkey and Dragon having half-donkey, half-dragon babies... which is exactly what happened.
The facial features of Shrek's human form bear a striking resemblance to Wreck-It Ralph.
Prince Charming is the spitting image of Jaime Lannister from Game of Thrones, only with Joffrey's personality and motivation. Not to mention the first movie dealt with a short maniacal nobleman in a red suit...
One of the jokes in the intro montage has Shrek getting caught in a trap where he hangs upside down and gets mud on his face, which Fiona wipes off and kisses him while he hangs upside down, in a parody of Spider-Man. Due to the fact that Marvel is owned by Disney, which Shrek is notorious for swinging at, this becomes very amusing.
Misaimed Fandom: Several fans have wished Shrek and Fiona could have stayed as humans because they're more attractive that way, completely ignoring that the main moral of the movie was that true love could only be found within, and that judging people solely based on their appearances was morally wrong and incredibly hurtful to the person in question.
Moral Event Horizon: The Fairy Godmother could be seen as a JerkassKnight Templar at first... up until she decides to use a potion to make Fiona fall in love with Prince Charming. She's even stated that this is not unusual for her. This is what ultimately cracks Harold and makes him go back on his promise to the Fairy Godmother.
Uncanny Valley: While the animation as a whole is much less subject to this than the first movie, some people feel that Donkey's stallion form (with human eyes and lips on the face of a horse) falls into this trope. Rather ironic, considering that in the first movie it was the human characters who looked uncanny and the animals who were much more bearable.
Values Dissonance: Even if the line is delivered by a Politically Incorrect Villain that the audience is intended to lack sympathy for, the fact that the Fairy Godmother's characterization of the cross-dressing Big Bad Wolf as "gender-confused" is likely being Played for Laughs by the makers of the film may feel out of touch with today's attitudes for some viewers, though judging by the commentary track, it wasn't meant to advocate anything any more than the gag about Pinocchio wearing panties or the bar woman being voiced by Larry King was.
YMMV tropes that apply to the game:
Ensemble Dark Horse: Lil Red is considered a big fan-favourite by those who played the game, due to her being a sassy, softball-pitching Little Miss Badass. She's so beloved that there's actually a decent amount of demand to see this specific version of her be canonised in the movie universe.
Game-Breaker: If you can find and purchase the secret upgrades hidden throughout the game, be prepared for most of the difficulty to go down by a lot. Enemies that used to take several hits to go down now only require one or two to defeat with enough strength upgrades, the team's survivability goes up significantly with the health upgrades, and it's really easy to gather up enough treasure to buy them all since the treasure doubling upgrade is found very early on in the gamenote Spooky Forest and can be used in the bonus games to gain treasure in the thousands easily.