As they prepare to graduate from college, the Muppets perform a musical revue they call 'Manhattan Melodies.' The show is a major crowd-pleaser, and several people suggest that Kermit take the show to Broadway. Kermit is at first unsure, but the other Muppets insist on this as well, and they head off to New York City.
The gang goes from place-to-place, but none of the big Broadway producers seem interested. As their money dries up, the group stops into a small restaurant, run by Pete and his daughter Jenny. It is here that the other Muppets secretly reveal to each other (minus Kermit) that maybe they are holding him up from being able to make 'Manhattan Melodies,' and lie to Kermit, explaining they have gotten job offers in other parts of the country.
The group parts ways, and Kermit is left alone in Manhattan. Unsure what to do, he goes to the top of the Empire State Building, and looking down, regains his resolve, shouting out that he is going to succeed, and get his friends back and get 'Manhattan Melodies' made.
Partnering with Jenny and working at Pete's restaurant, Kermit attempts to try several different technicques to give the play to certain people:
- barging into a producer's office pretending to be an old friend.
- recruiting several of Pete's rat cooks to spread a whispering campaign in a high-profile restaurant.
However, each of these attempts leads to failure, but Jenny insists that Kermit shouldn't give up. While in Central Park, both are surprised to come across Miss Piggy, whom Kermit had assumed had left with everyone else. Though it soon becomes apparent that Piggy has been following Kermit, and thinks that he has developed a relationship with Jenny.
Kermit ends up helping Piggy get a job at Pete's soon after. Looking through mail from their friends, Kermit is surprised to find a letter from the office of Bernard Crawford, a big Broadway producer. Kermit rushes off only to find that the letter was sent by Bernard's son, Ronnie. Bernard is willing to give his son the chance to produce a picture, and Ronnie loves 'Manhattan Melodies' and wants to produce it! Kermit eagerly calls up Piggy and Jenny and tells them the news, but then gets so excited that he walks into the middle of the street and gets hit by a car, developing amnesia.
After being in the hospital, Kermit's memory still hasn't recovered, but the hospital sends him on his way. Wandering into an ad agency, a trio of ad executives (who happen to be frogs) take Kermit in when he helps them with a soap advertising tagline.
Meanwhile, the rest of the Muppets have returned to New York, but the group is now faced with trying to find Kermit, as well as prepare for the opening of the show in 2 weeks! Even though they find Kermit at the diner, he does not remember them so they are forced to bring him to the theatre.
At the theater where Manhattan Melodies is set to show, Piggy tries to one time to remember get Kermit to remember, but he just makes hating comments about love between a frog and a pig. She hits him with a punch and Kermit finally reunites with his friends.