After Bobo the Bear accidentally kills Arsenio Hall, the original guest star, the Muppets must search frantically for a new one while Dr. Phil van Neuter and Mulch succeed in bringing Arsenio back to life, but the result has been postponed until close to the end of the episode. Jay Leno, Kevin Eubanks, Little Richard, Christopher Darden, and Kathy Ireland make cameos.
With Beaker off on a Star Trek cruise (where he encounters George Takei), Dr. Bunsen Honeydew realizes his life is very empty. Bunsen and guest star, Andie MacDowell, decide to take a walk on the wild side. Bob Keeshan and Ben Stein make cameo appearances with special performance by Liz Gandara, Lisa Thompson, and Jennifer Keyes as the Fly Girls.
Gary Cahuenga, a dummy without a ventriloquist, is found after forty years stuck in an old trunk. The Muppets, with the help of Penn and Teller, must help Gary adjust to his new surroundings, as well as to make new friends at KMUP. Lori Fetrick, Raye Hollitt, Evander Holyfield, and Kathy Najimy make cameo appearances.
Gonzo and Rizzo host a collage of video clips of the best moments from past episodes. This was because the pre-recorded episode tape had been eaten by Carl, along with the tape-playing machine during a cheese-eating contest. As Gonzo and Rizzo walk off the stage, they notice that Statler and Waldorf have just finished broadcasting their own show titled The Worst of Muppets Tonight. Of course, they showed the exact same clips that Gonzo and Rizzo showed.