This special was taped in 1977 but did not air until August 1979, on ABC. It featured most of Andy's famous gags, including Foreign Man/Latka and his Elvis Presley impersonation, as well as a host of unique segments (including a special appearance by children's television character Howdy Doody and the "Has-been Corner"). There also is a segment that included fake television screen static as part of the gag, which ABC executives were not comfortable with, fearing that viewers would mistake the static for broadcast problems and would change the channel—which was the comic element Kaufman wanted to present. Andy's Funhouse was written by Kaufman, Zmuda, and Mel Sherer, with music by Kaufman.

Based on the "Saturday Night Live" shorts, Mr. Bill stars in his own show, but this time he's played by a human actor.