For the first number there's a pink monster dancing with a bunch of furry lines. The monster is also singing "Dance." The background is changing colors.
Scooter tells Kermit there's a phantom of The Muppet Show. Hilda said it was her fixing the costumes. Wanda screams that there's a phantom.
Twiggy gives a press conference. The Muppets act as reporters. She sings "In My Life" as pictures of her life are shown.
Fozzie and Gonzo tell Kermit that he needs to take care of the the phantom. Hilda says it's her but everyone agrees that it isn't.
Wayne and Wanda sing "Let It Snow" until it starts snowing on them.
Gonzo and Muppy are snuggling in bed. They want Twiggy to tell them a bedtime story. she reads "The King's Breakfast" by A.A. Milne. Queen wants butter so she tells the dairy maid who goes to the cow. The cow suggests that the king use marmalade. The king still wants butter on his bread. The cow gives the diary maid butter to give to the king.
At the ballroom are Staler and Waldorf dancing together and Kermit gets dipped.
Rowlf plays Beethoven's "Minute in G" on the piano. He makes a couple of mistakes.
Fozzie goes up to the Vendaface machine. The machine says his problem is that he's too generous and has a temper.
Hilda screams because she sees a very ugly face. But it's only Gonzo. Kermit sees the phantom and freaks out.
Muppet Newsflash shares a story about a woman who are a diesel tractor.
The phantom comes after Kermit again. He wants his theater back. He said no one will perform at the theater again. George admits that he was a phantom because he wanted to scare everyone. But then everyone else hears the phantom and it isn't George.
Twiggy sings "Nobody's Business But My Own" all ready for a country hoedown. The jug band sings backup on the choruses.
At the closing the phantom thinks he was the special guest star.