Kermit the Frog, Miss Piggy, Fozzie Bear, and the rest of the The Muppets have graduated from Danhurst College by entertaining their fellow graduates with their theatrical production of ''Manhattan Melodies''. Upon the suggestion of taking the show to Broadway (Manhattan), the Muppets proceed with the idea, certain they will become stars instantly. Arriving in Manhattan, the group meet producer Martin Price (Dabney Coleman) but the police arrive and reveal he is a wanted con artist named Murray Plotsky. Plotsky is arrested, leaving the Muppets' hopes dashed. They try other theatrical producers to no avail, leading to their morale and finances taking a nosedive.