Walter has always felt like he doesn't quite fit in with the rest of the folks in Smalltown, USA. What Walter wants more than anything else is to go to Hollywood and meet the Muppets. His brother Gary knows how Walter idolizes Kermit, so he and his girlfriend, Mary, decide to take Walter on a trip to California. But when they arrive, they discover that the Muppets have broken up, the Studios are in ruins, and the Muppets Theater is about to be purchased by a greedy oil tycoon who believes that the theater is sitting on top of a large untapped oil source. The only way to save Muppet Studios is to reunite the Muppets and put on a fund-raiser show. Can Walter, Gary, and Mary help Kermit get the Muppets back together and save their theater?