Take the basic story of It's a Wonderful Life. Add Muppets. This what you get! An angel named Daniel (David Arquette) watches Earth on Christmas Eve in horror. Kermit the Frog and his friends, through a series of mishaps, misplace their theater's December rent payment to the wicked Rachel Bitterman (Joan Cusack), who wants to tear down the theater to build a nightclub. Determined not to let the despondent Kermit give up on his dreams, Daniel appeals to his Boss (Whoopi Goldberg) to review the situation and intervene. Daniel himself is sent to aid Kermit, who is so distraught by the events that he wishes he had never been born. As in the original film, the angel grants the wish, taking Kermit on a crazy trip through an alternate existence in which Miss Piggy is a theatrical has-been who does telephone acting, Fozzie is a pickpocket, and Gonzo is homeless, among others. Then when Kermit tries to un-wish the situation, Daniel's not entirely sure how to put the world back to normal...