The film is a Pied Piper-like figment of Malabar’s folklore about a partly mythic and partly real magician called Kummatty (bogeyman). Kummatty travels from place to place and entertains children with dancing, singing and performing magic. At one such performance at a village, Kummatty starts to mingle with and weave a spell of carefree abandon around the children of the village. He turns a group of children into animals. But one boy, who was changed into a dog, is chased away and misses the moment Kummatty changed the children back to their human form. The dog-boy has to wait a year until Kummatty returns to the village to get back his human form.
Claude heads to New York upon receiving his draft notice, leaving the family ranch in Oklahoma. He arrives in New York where he is rapidly indoctrinated into the youth subculture before reporting in for boot camp.
After a successful robbery leaves famed thief Lupin III and his partner Jigen with nothing but a large amount of fake money, the so called "Goat Bills", he decides to track down the counterfeiter responsible - and steal any other treasures he may find in the Castle of Cagliostro, including the 'damsel in distress' he finds imprisoned there.
Kermit the Frog is persuaded by agent Dom DeLuise to pursue a career in Hollywood. Along the way, Kermit picks up Fozzie Bear, Miss Piggy, Gonzo, and a motley crew of other Muppets with similar aspirations.