Plot
The Muppets perform their theatrical production of Manhattan Melodies for their graduating class at Danhurst College, and encouraged by the audience's enthusiastic response, decide to take the show to Broadway, certain they will become instant stars. Arriving in Manhattan, the group meet producer Martin Price, but are interrupted by the police, who have arrived to arrest him as a wanted con artist, whose real name is Murray Plotsky. The Muppets try other producers for several months to no avail, depleting both their morale and their finances. Thinking they are becoming a burden to Kermit when he snaps at them, the rest of the Muppets agree to go their separate ways to find work, though Miss Piggy secretly remains in Manhattan to keep an eye on Kermit. Though disappointed by the development, Kermit vows to make the show a hit and enlists the assistance of diner owner Pete, his aspiring fashion designer daughter Jenny, and the diner's staff of rats led by Rizzo.
Kermit's attempts to promote the show fail, while he learns from letters received from his friends that Scooter works at a Cleveland, Ohio movie theater; Fozzie has joined some other bears hibernating in Maine but cannot sleep; Dr. Teeth and the Electric Mayhem have a gig in Pittsburgh, Pennsylvania, performing in a retirement home; Gonzo and Camilla are trying to make a successful water skiing act in Michigan; and Rowlf is working at a dog kennel in Delaware. In Central Park, Jenny comforts Kermit about his setbacks, while an envious Piggy watches. While she is distracted, Piggy's purse is stolen but she gives chase and, in the ensuing chaos, reunites with Kermit, and takes a job at Pete's. During a carriage ride, Piggy has a fantasy in which she, Kermit and a few other Muppets are babies, but wakes up when Kermit says the carriage had stopped.
Kermit receives a letter from producer Bernard Crawford, who is interested in the musical. However, Kermit discovers the letter was actually written by his son Ronnie, who is eager to prove himself as a producer and believes that Manhattan Melodies is a worthwhile endeavor. His father reluctantly agrees to support him. Thrilled that the show will then be ready in two weeks, Kermit heads back to the diner but is so distracted that he walks into oncoming traffic and is struck by a passing taxi knocking him unconscious.
Piggy summons the rest of the Muppets back to New York, and informs them that Kermit has disappeared. At the hospital, Kermit has lost his memory. He finds his way to Madison Avenue where he meets a trio of frogs in the advertising business, Bill, Gil and Jill; he joins them, taking the name Phil. The rest of the Muppets search in vain for Kermit through out the week while rehearsing for the show, and on opening night reluctantly accept that the show will have to go on without him. Meanwhile, Bill, Gil, Jill and "Phil" have ended up at Pete's diner, and Kermit's friends recognize Phil as Kermit when he unknowingly taps out "Together Again" on glasses of water. At the Biltmore Theatre, "Phil" still does not remember his friends, but when he ridicules the idea of being in love with Piggy, she karate chops him, bringing Kermit's memory back. As they hurriedly prepare for the opening number, the Muppets ask Kermit if their new friends can watch from backstage. Kermit instead works them all into the show as supernumerary actors.
The show is a smash hit, culminating in what is intended to be a staged wedding between Kermit and Piggy's characters, until Miss Piggy swaps out Gonzo with an ordained minister. Kermit hesitates but accepts.
