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Hallmark and the Muppets have had a long history together. In 1980, Hallmark began producing Muppet Christmas ornaments, most as part of their Hallmark Keepsake Ornament Collection. Although never a part of an official series, many handcrafted, satin, and glass ball ornaments were released in the early 1980s. There were also two silver "Little Gallery" ornaments created. All figural ornaments at this time solely depicted either Kermit the Frog and/or Miss Piggy.

Beginning in 2003, nineteen years after the last Muppet-themed Hallmark ornament was released, a new series of handcrafted Muppet ornaments was released, featuring Kermit and Miss Piggy in winter or Christmas-themed poses. The line lasted three years.

In 2008, following a two-year break since the last Muppet-themed Hallmark ornament's released, a new Muppet line began, focusing on The Muppet Show, the Muppet's YouTube videos, as well as newly recorded dialog from a multitude of characters. Statler and Waldorf sitting in their balcony was the first Muppet ornament in the Hallmark line to feature sound and be released under the "Magic" category of ornaments. The following years, The Swedish Chef, Animal, Beaker, Fozzie Bear, Kermit, Gonzo, Miss Piggy, The Electric Mayhem Bus, and Rowlf the Dog were added to the line.

In 2017, Hallmark celebrated The Muppet Christmas Carol's 25th anniversary with the release of an ornament of Bob Cratchit and Tiny Tim singing "Christmas Scat."

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