Walter is a puppet living with his human brother Gary in Smalltown. He and Gary became fans of The Muppets after watching The Muppet Show at a young age and Walter wishes to be one. After Gary wishes to take his girlfriend Mary to Los Angeles for their tenth anniversary, Walter tags along so he can visit the Muppet Studios. After a visit to the abandoned theater, Walter sneaks into Kermit the Frog's office and discovers that Stantler and Waldorf have just sold the theater to an oil tycoon named Tex Richman who plans to destroy it to drill for oil unless the Muppets can raise $10 Million to saves the theater. Gary and Walter then set out to bring the old group back together and save the theater, even if Gary's intentions to help may detract from his relationship with Mary.