The Muppet Workshop The Muppet Workshop is the classic name of the facility where Muppets are made by a group of . History . Around 1955 , Jim Henson built the very first Kermit out of his mother ' s old , green , spring coat . He built the puppet in the kitchen of his parents home in Maryland . It wasn ' t until a few years later , after Jim and Jane Henson were married , that the first " official " Muppet Workshop was created . It was housed in the basement of the Hensons ' home during the remaining years of " Sam and Friends " . New York . In 1963 , the Hensons moved into offices on 53rd Street in New York City . Although the space was small , Don Sahlin found the time to create a complex system of lines and pulleys for seven mice who lived in the workshop . In the book " " , Dave Goelz recalls that Bonnie Erickson ' s boyfriend had saved the mice from laboratory experiments , and that eventually Sahlin ' s efforts grew to include an entire aerial highway for the critters that wove itself around the workshop : up and over chandeliers , through cupboards and desks , all made of clear plastic spheres and Slinky toys . In 1977 , the Workshop found a home in the newly acquired townhouse on East 69th Street . An article from the February 1980 issue of " Interior Design " described some changes made to the rear of the building to facilitate a two - story puppet assembly area . By 1981 , the department was being led by Caroly Wilcox , and also employed Faz Fazakas , Lyle Conway , Marianne Harms , Ed Christie and Nomi Frederick . In December 1985 , the Workshop was relocated to a space consisting of three floors at 201 East 67th Street ( on the corner of 3rd Ave ) . This location was featured during a live - by - satellite interview with Jim Henson on " CBS This Morning " in 1989 . The same year , Henson gave a tour of the Workshop in " , " which was filmed for " The Jim Henson Hour " . From 1997 to 2004 , Ed Christie served as the Muppet Workshop supervisor . In early 2002 , the Workshop moved from the three - level space on East 67th Street back to the basement of the Townhouse on East 69th Street . This was the final location as " the Muppet Workshop " until Henson sold to The Walt Disney Company . Since Disney ' s purchase of the Muppets in 2004 , Jim Henson ' s New York Workshop , as it is now known , has become a division of Jim Henson ' s Creature Shop . Still located in New York City , the workshop has moved to Long Island City , Queens , near the Kaufman Astoria Studios , where it is headed by Connie Peterson as Workshop Manager , and Jason Weber as Creative Supervisor . Though the workshop is no longer responsible for the creation of Muppet characters , they continue to build the puppets required for Jim Henson Company productions as well as " Sesame Street " . The new , sans - " Muppet " name has also been alternatively credited as Jim Henson ' s Puppet Workshop and Jim Henson ' s New York Puppet Workshop . Elstree Studios . During production on " The Muppet Show " , a workshop was set up near London . It was located in an L - shaped room adjacent to Studio D at ATV ' s Elstree Studios in Borehamwood . This shop was principally staffed by Muppet designers and builders from New York , and early on , almost everything needed for the show was built and maintained at this location . However , the work was eventually split up between the British and New York workshops , even with an increase in staff at Elstree . While the Muppet Workshop in New York had it ' s mice , the Elstree shop was home to it ' s own " infestation " . Amy Van Gilder , who was in charge of the London workshop for four seasons , recalled : The Elstree shop can be seen in the documentary " Of Muppets and Men " in a behind the scenes look of " The Muppet Show " ’ s creation . Supervisors during this time were Robert McCormack and Sara Paul . Merchandise . The Muppet Workshop has collaborated on three books : " The Muppets Make Puppets " ( 1994 ) , " The Muppets Big Book of Crafts " ( 1999 ) and " Quilting with the Muppets " ( 2000 ) . Several toy kits were also released in conjunction with the Workshop as well as a collection of McDonald ' s Happy Meal toys . See : .