What is year is this from? That's really beautiful. Muppet composers have always had a thing for deep, complex chord changes, which I really admire; atypical for a "kid's show". Burt Bacharach.
This clip is actually a testament to why the Muppets are so amazing - one minute you can be setting off dynamite and throwing penguins at each other, and the next, changing someone's life in the deepest way possible.
I actually just watched the 1973 version with the laugh track... what is this? HR Pufnstuf, lol? The color combinations on those characters is incredible though.