The Jim Henson Foundation is a foundation that was founded by puppeteer and Muppet creator Jim Henson to promote and develop puppetry in the United States.

Past grant recipients include MacArthur Fellow Julie Taymor, director of the Broadway musical The Lion King; Roman Paska, whose dramatic interpretation of Strindberg's The Ghost Sonata was a hit at the 1994 Henson Festival; Ralph Lee, whose production A Popol Vuh Story was also presented at the 1994 Henson Festival and went on to tour New York City public schools; MacArthur Fellow Lee Breuer's company Mabou Mines, whose production Peter & Wendy was featured at the 1996 Spoleto Festival and the 1996 Henson Festival, followed by a month-long run at New York's New Victory Theater; Rome Prize recipient Dan Hurlin; Doris Duke Award recipient Janie Geiser; and MacArthur Fellow and Doris Duke Performing Artist Award Basil Twist, whose production Symphonie Fantastique had an acclaimed year-long run in New York.

[6] The Foundation awards Artist Grants in three categories: Production ($7,000), Workshop ($3,000) and Family ($4,000).

In 2015 the Jim Henson Foundation Residency at the Eugene O'Neill Theater Center was established.

The Jim Henson Foundation compiles listings of puppet theater performances, workshops, festivals and exhibits occurring in New York City, around the United States and internationally and shares them through a weekly Friday email list called Puppet Happenings and on the Foundation's website listings of the same name at PuppetHappenings.org.