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Episode Title: The Great Muppet Caper.
Episode Description: The film begins with Kermit the Frog, Fozzie Bear, and Gonzo the Great commenting on the opening credits from a hot-air balloon and introducing the premise of the movie to the audience. Throughout the film, the characters frequently break the fourth wall, discussing (for example) each other's acting choices and singing ability in the middle of a scene.
Kermit, Fozzie, and Gonzo play investigative reporters for the Daily Chronicle. Kermit and Fozzie, specifically, play identical twin reporters, which becomes the source of a running gag—supposedly, nobody can tell they are twins when Fozzie removes his hat. After the trio fail to report on a major jewel robbery, they ask their editor to allow them to travel to London to investigate the robbery and interview the victim, prominent fashion designer Lady Holiday.
With only $12 for the trip, they are forced to travel in an aeroplane's baggage hold and are thrown out of the plane as it passes over Britain. They stay at the dilapidated (but free) Happiness Hotel, which is populated by other Muppet characters such as Scooter, Rowlf the Dog, Dr. Teeth and The Electric Mayhem, Sam Eagle, the Swedish Chef, and Rizzo the Rat. When Kermit seeks out Lady Holiday in her office, however, he instead finds her newly-hired receptionist, the alluring Miss Piggy, and mistakes her for the fashion designer. Piggy poses as Lady Holiday, and asks Kermit out for dinner; to keep up the pose, she allows Kermit to assume she lives at a "highbrow" address. She sneaks into a townhouse at 17 Highbrow Street to wait for him, much to the surprise of the actual upper-class British residents, and they go to dinner at a nightclub...