The film picks up right where the previous installment ended, featuring the Muppets wrapping up their latest movie. As the excitement builds, they break into a lively song and dance where they brainstorm ideas for their next project. During this creative frenzy, Ricky Gervais whispers a compelling suggestion to Kermit about embarking on a global Muppet tour.
Introducing himself as Dominic Badguy, a seasoned tour agent known for orchestrating tours for stars like Rihanna and U2, he persuades the Muppets to hit the road. Kermit is initially hesitant, believing they should focus on perfecting their craft. However, with encouragement from his fellow Muppets, particularly Walter, Kermit ultimately decides to join the tour.
Dominic then contacts Constantine, a sinister frog who closely resembles Kermit but sports a distinguishing mole. Recently escaped from a Siberian prison, Constantine plots to meet Dominic in Berlin, subsequently revealing to the Muppets that their inaugural show will take place there. Kermit leads the group to a dilapidated theater, the only venue they can afford. Yet, Dominic pressures them to ignore Kermit's practical concerns to perform at a grander location near an art museum.
Feeling sidelined, Kermit eventually takes a stroll along an abandoned canal, where he is confronted by Constantine, who cunningly attaches a mole to Kermit's lip. Mistaken for Constantine, Kermit is arrested by the locals and sent off to Siberia.
As the Muppets engage in their performance, Constantine manages to pass himself off as Kermit, even as he suffers from stage fright. The show miraculously succeeds, while Constantine and Dominic secretly invade an art museum next door, making off with priceless paintings.
The following day, detectives Ty Burrell and Jean examine the museum robbery. They uncover evidence tying Dominic to the crime, who now stands as the second most wanted criminal after Constantine. As their storyline unfolds, they discover clues leading to a bigger heist involving the crown jewels, requiring a key from Madrid for the next leg of their tour.
Meanwhile, Kermit is incarcerated in a Russian prison where he encounters Nadia, played by Tina Fey, who sings an amusing tune about the glamorous life behind bars. Despite his grim surroundings, Kermit maintains hope that his friends will come to rescue him.
In Madrid, hijinks ensue as Constantine, masquerading as Kermit, allows the Muppets to operate without restrictions, even going so far as to declare his infatuation for Miss Piggy. Meanwhile, the real Kermit, confined and directing a chaotic revue, must devise a plan to escape.
As the tour continues, danger mounts with each performance, leading to further escapades that involve deception and high-stakes heists. Walter, Fozzy, and Animal eventually piece together the truth about Constantine's duplicity and set out to rescue their friend, Kermit.
The Dublin show features Constantine’s heist at a bank, coinciding with an impending wedding to Miss Piggy that raises the stakes even higher. As the plot thickens, the Muppets set in motion a daring rescue operation, eventually leading to a climactic showdown where Kermit emerges to reclaim his rightful place.
Facing off against Constantine, Kermit rallies his friends for a triumphant reversal of fortunes, while Nadia surprises everyone by allowing Kermit to remain free, provided the Muppets perform one last show in Siberia. The film culminates with a joyous performance celebrating friendship and unity, showcasing the Muppets’ signature charm and humor.
