Many of Shrek 's best adult-themed jokes live in the background, as less awkward questions are bound to come up that way. One of the best examples of the constant barrage of references comes in. Shrek put an entirely new spin on fairy-tale classics. In fact, the reason why adults were just as enamored with the animated tale as kids were, was because of all of the naughty jokes sprinkled.
Shrek and its sequels have entertained both kids and adults for years. One reason these films have withstood the test of time is due to the hidden adult humor in Shrek movies. Parents are able to enjoy the dirty jokes in Shrek films without the little ones getting the subtle references to sex, drugs, and other stuff for grown-ups. Shrek jokes that Lord Farquaad is overcompensating for something due to his extremely large castle. We imagine once Shrek saw him, he knew he was right.