While Muppet Babies are playing a game of football, the ball bounces into Piggy's dollhouse. The characters pile on top, breaking it. Skeeter then leads Baby Piggy in a tour of new dollhouse designs Animal, Kermit, and others have designed.

To help give them ideas, Nanny presents the babies with a pop-up book of famous buildings from around the world. The Sydney Opera house, a gothic cathedral, and the pyramids of Giza form the respective inspirations for Rowlf's, Gonzo's, and Skeeter's proposals. Piggy is ultimately dissatisfied with all the proposals, though.

While imagining themselves touring a pyramid, Kermit and Piggy walk into the gameroom, where a game of the "25,000 Doll-House Pyramid" (using footage from Dick Clark's $25,000 Pyramid) is going on. They accidentally win the game, and Baby Piggy's prize is a new dollhouse implementing features of all the previous design proposals.