As the Muppets prepare to graduate from college, they put together a delightful musical revue titled Manhattan Melodies. This performance quickly becomes a fan favorite, prompting several audience members to urge Kermit to take their show to Broadway. Although Kermit hesitates at first, the relentless encouragement from his fellow Muppets convinces him, and they embark on a journey to New York City.
Once in the bustling metropolis, the gang tries to pitch their show to various Broadway producers, but they all seem uninterested. As their finances dwindle, the group finds refuge in a small restaurant run by Pete and his daughter, Jenny. Here, the Muppets hold a secret meeting (without Kermit) where they candidly discuss whether they are hindering Kermit's ambitions to produce Manhattan Melodies. They eventually decide to mislead Kermit by pretending they have received job offers across the country, leading to a heart-wrenching farewell.
Left alone in Manhattan, Kermit faces uncertainty about his future. In a moment of inspiration, he ascends to the top of the Empire State Building and publicly vows to succeed and reunite with his friends. Teaming up with Jenny, Kermit takes various approaches to attract producers, including barging into an office while impersonating an old friend and enlisting the help of some rat cooks from Pete's kitchen to drum up buzz at a high-profile restaurant. Despite their efforts, every attempt falls flat. Nevertheless, Jenny remains steadfast, encouraging him not to lose hope.
While wandering through Central Park, Kermit is shocked to encounter Miss Piggy, who he thought had left with the others. It soon comes to light that she has been tailing him, mistakenly believing that Kermit is developing a romance with Jenny. He soon helps Piggy secure a job at Pete’s restaurant. While sorting through letters from their friends, Kermit uncovers a message from the office of Bernard Crawford, a prominent Broadway producer. Although Kermit excitedly rushes to find Bernard after learning that his son, Ronnie, is keen on producing Manhattan Melodies, he tragically gets hit by a car in his excitement, resulting in amnesia.
After a stint in the hospital, Kermit's memory remains elusive. However, fate intervenes when he stumbles into an ad agency, where he impresses a trio of frog executives who decide to take him under their wing after he assists them with a soap advertising tagline. Meanwhile, the other Muppets have returned to New York, desperate to locate Kermit while also preparing for their show, which is set to debut in just two weeks. Despite finding Kermit at the diner, they discover that he doesn’t recognize them and must forcibly bring him to the theater.
At the theater, as Manhattan Melodies is poised for its big night, Piggy makes a heartfelt attempt to jog Kermit’s memory. Her efforts, however, are met with derision when he mockingly comments on the idea of romance between a frog and a pig. Frustrated, she delivers a punch, which finally brings Kermit back to reality, leading to a joyful reunion with his friends.
