It consists of six stories from the fairy tale tradition, all performed by the Muppet characters and narrated by Gonzo and Rizzo at the Muppet Theater: A Papa pig tells his three children Andy, Randy, and Sandy (played by Miss Piggy) that it is time for them all to live on their own.
Papa tells Andy and Randy that they are strong smart boys who can take care of themselves, but they need to look after their sister Sandy.
While the two brothers build flimsy homes of straw and sticks, Sandy constructs a state-of-the-art brick house.
Sandy opens up the door and karate chops the Big Bad Wolf when she accuses him of his claim that she has facial hair.
When Andy and Randy think that Santa Claus came early, Sandy ends up lighting a large firecracker in the chimney which launches the Big Bad Wolf into the sky.
After all attempts have failed, the sheep state that the shepherd learned his lesson and protested to end the story before the wolf arrives.
A sad and lonely King (played by Kermit) turns to his Loyal Royal Advisor to find him a fair young maiden to be his queen, someone who is special.
Piggy is placed in a room full of straw where the Loyal Royal Advisor orders her to demonstrate her gift that her father claims that she has or else she will be spending the rest of her life in the dungeon.
She ends up receiving the assistance of Rumpelstiltskin (played by Gonzo) who spins the straw into gold upon Piggy giving him her necklace.
Piggy called the King, the Loyal Royal Advisor, and her father where she told them the whole truth about her having help in converting straw into gold.
Robin the Frog doubts Rizzo's claim while another man stated that the Curative Elixir cured his baldness as a rat is seen on top of his head.
Rizzo has Yolanda take measurements in preparation for his new clothes while Montague weaves the finest fabric in all the land.
Before Rizzo can lead Yolanda and Montague to their next business in Tarzana, Emperor Fozzie states that he will hold a celebration to show off his new clothes with the rats being his guests of honor.
Song: "Nothing's Too Good for You" A shoemaker (played by Kermit) and his nephew Robin are visited by the local banker who demands his money by tomorrow or he will toss them into the street.
When the shoemaker and Robin go to sleep, their house is visited by a group of philanthropic entertainer elves (all dressed like Elvis Presley) and make blue suede shoes.
The next morning, the shoemaker and Robin wake up to find the blue suede shoes and many customers waiting outside of their store.
Once the shoemaker and his nephew have fallen asleep, they awoke in time to see the elves working on the blue suede shoes.
Additional Muppets performed by Tim Blaney, Cheryl Blaylock, Kevin Carlson, Terri Hardin, Drew Massey, James Murray, Joe Selph, and Michelan Sisti.
The film has only seen a DVD release in some European territories such as the United Kingdom, where it was included as a bonus feature on Volumes 2 and 3 of The Very Best of the Muppet Show.