Miss Piggy buys a cute new pair of shoes, but they're too small, and she can't walk in them. She wants to take them back, but Kermit compliments them, so she has to keep wearing them. She complains to Carol, who says she should have them stretched, and gives them to the gigantic Timmy Monster, who runs around the block in them.
Jonathan is convinced that a gypsy has put a curse on the show, and while Kermit scoffs at the idea, he does notice that everything is going wrong. A few acts have to be canceled, but Kermit refuses to believe there's a curse until a meteorite falls on his flipper. In the final stage of the curse, everyone begins to speak in mock Swedish.
Statler is sick (of the show), so Waldorf brings his wife Astoria to the show. Meanwhile, Inspector LaBrea of the County Environmental Department arrives backstage to monitor the noise level of the show. LaBrea tells Kermit that to keep the noise down, he has to cut the trumpets for the show. Kermit tries to keep LaBrea busy while Dizzy performs.
The Muppets present a murder mystery. Kermit is a private eye hired by Liza O'Shaugnessy, an actress whose production is being terrorized by a killer. The director, Fritz (Strangepork), is shot. The police assign Patrolbear Fozzie to the case, and he interrogates the cast: "All right, which one of you killed the director?" The suspects are themselves killed one by one, until Kermit and Liza team up to unmask the true killers.
Miss Piggy announces that this show is Kermit's birthday, and before he can react, she launches into the tribute she's organized. They've planned a This Is Your Life-style show with birthday greetings, including one from Mr. Dawson, Kermit's old acting coach from Leland, Mississippi. Wayne and Wanda, the singing duo from the first season, show up and give Kermit such a guilt trip that he rehires them. When they sing, Kermit remembers why he fired them in the first place.