Directly after the previous film, the Muppets find themselves at a loss as to what to do until a man named Dominic Badguy, claiming his last name is pronounced "badjee" in French, suggests the Muppets go on a European tour with him as their tour manager. Unbeknownst to the Muppets, criminal mastermind Constantine, who resembles Kermit, escapes from a Siberian Gulag to join his subordinate Dominic in a plot to steal the British Crown Jewels. Things get worse when Constantine frames Kermit and has him captured and taken away by German authorities, but Constantine's less-than-optimal act as Kermit leaves the rest of the group weary that something is not right so they set off to save Kermit and thwart Constantine's plan.