Big Bird and his Sesame Street companion, Barkley, the big, fluffy dog, travel across China in search of the legendary Feng Huang, the Phoenix Bird. Along the way they visit with Chinese schoolchildren, watch a Tai Ji demonstration, learn some Chinese words and songs, and meet the mischievous Monkey King.

When the Muppets graduate from Danhurst College, they take their song-filled senior revue to New York City, only to learn that it isn't easy to find a producer who's willing to back a show starring a frog and a pig. Of course, Kermit the Frog and Miss Piggy won't take no for an answer, launching a search for someone to take them to Broadway.

The Muppets gather to watch their newly-finished big-budget rich-and-famous feature film: a talent agent persuades Kermit the Frog to leave the swamp to pursue a career in Hollywood. On his way there, he meets a bear, a pig, a whatever (his future muppet crew), and some special celebrity guest stars, while being chased by the desperate owner of a frog-leg restaurant!