Billy Bones is the drunken, wizened resident of the Admiral Benbow Inn in Muppet Treasure Island. An inveterate teller of tales, Bones spends his days recalling his time as a member of Captain Flint's crew, before Blind Pew, Black Dog, and other old shipmates seek him out.

The already nervy Bones, terrified of the one-legged man, is further distressed by the receipt of the Black Spot. The captain entrusts the map to Jim Hawkins (as well as giving him, Gonzo, and Rizzo a warning about running with pointy objects), but dies soon after of a heart attack. Billy Bones also possesses a Scottish accent (a trait not mentioned in the original novel).