Scooter sends the little Muppet monsters to the basement. The trio finds equipment and starts broadcasting their own TV show. They also encounter Nicky Napoleon and His Emperor Penguins, a group of penguins who broke into the basement and end up providing music for the show. Tug goes upstairs to convince Kermit to write something for the show - Kermit presents a story from Muppet City starring himself and Fozzie as private eyes. The monsters end the show with a big musical number about being on TV.