On vacation in Los Angeles, Walter, the world's biggest Muppet fan, and his friends Gary and Mary from Smalltown, USA, discover the nefarious plan of oilman Tex Richman to raze the Muppet Theater and drill for the oil recently discovered beneath the Muppets' former stomping grounds. To stage the greatest Muppet Telethon ever and raise the $10 million needed to save the theater, Walter, Mary, and Gary help reunite Kermit the Frog, Miss Piggy, Animal, Fozzie Bear, The Great Gonzo, and the rest of the gang. But now that they are back together, can the Muppets put on the show of their lives and save the studio in time?