Playmates Toys created this Muppet Babies Castle Playset in 1989. The aqua-colored castle features a large clock, with the head of Gonzo on top of it, a drawbridge, and an elevator. Included with the castle were a covered "minstrel wagon", a horse in armor, a baby dragon, a rocking horse, a stove, a table, and a crib.

The set featured Baby Kermit as a king, Baby Gonzo as a knight, Baby Beaker as a jester, Baby Bunsen as a wizard, Baby Piggy, and Baby Kermit as a page.