In the 1980s, he guest starred on Sesame Street as Vincent van Grouch, the Grouch curator of the Museum of Trash (EKA: Episode 2504). In another segment, still in costume, he gets into a laugh competition with Oscar, who attempts to imitate every laughing pattern DeVito gives him. He appeared out of costume in a different insert, in which he waits at a grouch bus stop with Oscar and Bruno. (EKA: Episode 2642)
Transitioning from television to film, DeVito often works with Kathleen Turner, Arnold Schwarzenegger, and director Tim Burton (including playing the Penguin in Batman Returns). He has also turned to producing (including the Andy Kaufman biopic Man in the Moon), and directing Death to Smoochy and Roald Dahl's Matilda.
Other Muppet credits include appearing on the cover of Muppet Magazine issue 22 in 1988, appearing in the 1994 special Sesame Street's All-Star 25th Birthday: Stars and Street Forever! as a Worm TV reporter, and appearing in the celebrity version of Put Down the Duckie with Rhea Perlman, to whom he was married at the time.
In the Jim Henson Hour episode "Miss Piggy's Hollywood", Miss Piggy and Gonzo are unsure of what celebrities' house they are in front of, with Gonzo suggesting that it is Danny Devito's home (among others).
DeVito spoke to Empire magazine about his favorite Muppet: "Snuffleupagus. I had a terrible experience once. I was going to do Sesame Street and went to 11th Avenue in New York, where they do the show. When I walked onto the soundstage, my heart sank. Because 30 feet up, hanging on ropes, looking really limp, was Snuffleupagus. It almost destroyed me."