The 120-second commercial is part of a £25 million integrated campaign to launch the bakery brand’s new Giant Crumpets range.
It is the second ad from the company this year that stars a well-known character. In April, Sylvester Stallone starred in "the deliverers", an ad shot in the style of a film trailer with nods to some of the actor’s best-known films including Rocky and The Expendables.
Three teaser ads were unveiled on Friday, asking viewers to guess which celebrity would feature in Saturday’s new ad.
The ad will be shown tonight at 8.30pm during The X Factor, before rolling out across other channels at 9.30pm.
The ad begins with Kermit the Frog barging his way into Jonathan Warburton’s office with an idea to celebrate the launch of the brand’s new Giant Crumpets.
The "Giant Crumpet Show" stars Muppets characters Kermit the Frog, The Swedish Chef, Fozzie Bear, Statler and Waldorf, Sweetums and Miss Piggy.
Kermit the Frog said: "It’s the thickest and fluffiest production we’ve ever done. We held nothing back, and I’m proud to say no Giant Crumpets were harmed during the making of this advert."
The Giant Crumpet extravaganza was directed by Crash Davenport and Declan Lowney of Another Film Company. Art direction and copywriting was led by WCRS creatives, Andy Lee and Jonny Porthouse and executive creative director, Billy Faithfull.
Mindshare handled the media.