Jim Henson's Muppet Babies Live! was the first of three live stage shows based on Muppet Babies produced by VEE Corporation. The Muppet Babies first appeared live on stage in VEE's 1985 show The Muppet Show On Tour: 2nd Edition. Muppet Babies Live! premiered the following year, in 1986.

The characters were performed live on stage by puppeteers inside full-body Muppet Babies costumes, resembling the Babies' appearance from the I'm Gonna Always Love You sequence in The Muppets Take Manhattan. The performances were synced to vocal tracks by the original cartoon performers.

Two more Muppet Babies Live shows were presented in the following years -- Muppet Babies: Magic Box in 1987, and Muppet Babies: Where's Animal? in 1988.

There were some items exclusively available for the tour. Among them were a series of buttons, a souvenir program, banners and pennants.