Elmo loves his fuzzy, well-worn blue blanket more than anything in the whole world. However, when Elmo's blanket gets sucked through a colorful, swirling tunnel into Grouchland, the yuckiest place on earth, Elmo goes on an adventure to Grouchland to retrieve his prized possession.

At 12 years old, Kermit the Frog and best friends Goggles and Croaker travel outside their homes in the swamps of the Deep South to do something extraordinary with their lives.

When Kermit the Frog and the Muppets learn that their beloved theater is slated for demolition, a sympathetic human, Gary, and his puppet brother, Walter, swoop in to help the gang put on a show and raise the $10 million they need to save the day.