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Kermit visits Muppet Labs where Dr. Bunsen Honeydew demonstrates the interactive controls and shoots Beaker off into space. Meanwhile, The Great Gonzo embarks on a high-flying daredevil act, Fozzie Bear does his comedy act as heckled by Statler and Waldorf, and Kermit and Fozzie go off on an Indiana Jones adventure featuring Princess Janice, Lew Zealand and some chickens. Link Hogthrob, Dr. Strangepork, Animal and Rowlf (the wonder dog) feature on television, before a final party and closing number.
At the end of the game, Kermit and Gonzo ask you to choose to hear the closing song from their point of view. In Kermit's version, the Muppets sing a closing number called "Everything Was Wonderful!" In Gonzo's version, the closing number is "Everything Was Terrible!" Similarly, a Muppets TV show within the program is either a science fiction series or a soap opera, depending on the soundtrack, and Fozzie Bear's comedy act is successful or unsuccessful.
The video has two different soundtracks recorded, and the player's choices toggle back and forth between the soundtracks, as well as controlling simple video gameplay. Although there is only one video track, the optional parts of the soundtrack are designed to fit the movement of the Muppets' mouths.
- Director: Jim Henson
- Writers: Bill Prady, Joe Bailey, Jim Lewis and David Yazbek
- Performers: Jim Henson, Frank Oz, Dave Goelz, Jerry Nelson, Richard Hunt, Camille Bonora and David Rudman