Kermit and Fozzie are newspaper reporters sent to London to interview Lady Holiday, a wealthy fashion designer whose priceless diamond necklace is stolen. Kermit meets and falls in love with her secretary, Miss Piggy. The jewel thieves strike again, and this time frame Miss Piggy. It's up to Kermit and Muppets to bring the real culprits to justice.

Kermit the Frog throws a glamorous party at the Cocoanut Grove nightclub to celebrate the premiere of the Muppets' first feature film, The Muppet Movie. Hosts Dick van Dyke and Rita Moreno interview the wide array of celebrities and Muppets who attend the event. Gary Owens serves as off-camera announcer, and appears on-screen to introduce Miss Piggy.