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Television
- Fraggle Rock Season 3 begins on HBO, January 7
- Muppet Babies Season 2 begins on CBS, September 14
- Sesame Street Season 17 (1985-1986) begins on PBS, November 18
- Little Muppet Monsters airs on CBS, September 14 - 21
- Jim Henson Presents miniseries
Movies
- Follow That Bird released on August 2
- Muppet Meeting Films: Muppet Lift Off
Appearances and Events
- Macy's Thanksgiving Day Parade features the Kermit the Frog Balloon
- The Captain, Sprocket and the Fraggles appear on The Royal Variety Performance
- Night of 100 Stars features Jim Henson in a performance of "One" from "A Chorus Line", and the Muppets in a salute to New York City
Stage Shows
- The Muppet Show On Tour: 2nd Edition begins
- Sesame Street Live presents Save Our Street
Storybooks
- Bert and the Broken Teapot
- Big Bird's Book About the Earth and Sky
- Big Bird Brings Spring to Sesame Street
- Big Bird Can Share
- Big Bird's Copycat Day
- Big Bird's Day on the Farm
- Big Bird Joins the Carnival
- Boober Fraggle's Ghosts
- The Cave of the Lost Fraggle
- Cookie Monster's Blue Book
- Count All the Way to Sesame Street
- Follow the Monsters!
- Fraggle Countdown
- Gobo and the River
- Goodnight Wembley Fraggle
- Grover Learns to Read
- Grover's Book of Cute Little Words
- I Can Count to Ten and Back Again
- I Want to Go Home!
- The Last Days of Fraggle Rock
- Meet the Fraggles
- Mokey's Birthday Present
- Muppet Babies at the Circus
- Muppet Babies Night Light Book
- Sprocket, Dog Detective
- A Visit to the Sesame Street Hospital
- Waggleby of Fraggle Rock
- When Grover Moved to Sesame Street
Non-fiction Books
Albums
- Ernie Gets Lost (book/tape set)
- Follow That Bird (soundtrack)
Videos
- Children's Songs and Stories
- Country Music with the Muppets
- Fozzie's Muppet Scrapbook
- Gonzo Presents Muppet Weird Stuff
- The Kermit and Piggy Story
- Muppet Moments
- The Muppet Revue
- The Muppets Take Manhattan (CBS/Fox Home Video)
- Muppet Treasures
- Rock Music with the Muppets
- Rowlf's Rhapsodies with the Muppets
Merchandise
- Muppet Magazine issues 9-12
- Fraggle Rock Comics first issue April
- Muppet Babies Comics first issue May
- Kermit's Electronic StoryMaker book/video game
- The Great Gonzo in WordRider book/video game
People
- Kevin Clash joins Sesame Street
- Desiree Casado born
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