From Muppet Wiki

Written by
Music by	Rob Walsh
Lyrics by	Hank Saroyan
Date	1984
Source
Publisher	Henson Associates, Inc.

The theme song for Muppet Babies details how the power of make believe is empowering, and can allow one to be engulfed in a sea of Star Wars clips. An extended verse in which the babies introduce their interests was included, but was usually cut in the 1989-1991 intro and US syndication but the opening uncut could be seen in the UK.

A version of the theme without the lead vocals was also originally used for the end credits in the 1984-1985 episodes of the show. Starting with the second season, an instrumental version of the Muppet Babies and Monsters theme (itself a variation of the Muppet Babies theme) was used for the credits.

The theme was performed in Jim Henson Presents: Muppet Babies Live.