Mario and Luigi are eating breakfast, when Mickey falls out of the sky warning the two brothers that an evil monster called "The Green Terror" will attack the Mushroom Kingdom. Mario fails to believe him, when Mickey adds that he will strike at midnight.
Mario and Luigi wake up in the middle of the night, only to find out nothing is there. After returning to bed, Kermit suddenly appears and sets out to create evil clones of Mario and Luigi.
He orders a pizza as a trap for them, provoking the Mario Bros. to fall in a deep sleep. He draws his plan on paper on what they should look like, but Ricky (the cameraman) pops in and insults Kermit's artwork thus he's forced to help Kermit out. In Photoshop, he clones Mario and Luigi by creating Shadow Mario and Shadow Luigi. After printing them out, he sends the two off to exterminate the two brothers.
We later find out in a flashback scene from the Super Spy episode, that the reason for Kermit's motives is because Luigi hurt his feelings. During a card game, Kermit convinces Bowser and his goons to join his alliance.
After gathering more troops, Mickey gets Mario and Luigi an army as well and set off to the Forest to fight.
While in the Forest, nearly all the troops are defeated - when Mario faces off Kermit, he's beaten to death with logs.
While Luigi fights Kermit, Mario slips out of consciousness and wakes up in Banpresto Heaven; where he is given a second chance.
The two reunited brothers try to take down Kermit, but it's near impossible to defeat him. That's when Jack Skellington steps in and defeats Kermit with his special move, a Haunted Blast, saving the brothers' lives.
The film ends with the three remaining characters breaking the fourth wall and address to the audience that they've hopefully enjoyed the CMB's first "motion picture" and to stay tuned for more episodes in the future.
- Mickey Mouse
- Kermit the Frog
- Jack Skellington
- Bowser Jr.
- Buzzy Beetle
- Koopa Troopa
- Shadow Mario
- Shadow Luigi
- Camera Man
- Sonic the Hedgehog
- Patrick Star
- Spongebob Squarepants
- Banpresto God
- In the original trailer, a majority of scenes were either altered or left on the cutting room floor:
- A scene with the Angry Video Game Nerd and Luigi. The scene takes place at the computer, where the AVGN theme song is playing in the background with a screenshot of the AVGN on ScrewAttack.com on the screen and what appears to be the Nerd - a cut out piece of paper of him - standing there, before shouting: "Holy Crap!" to Luigi; only his hat being visible.
- Another was when Bowser Jr's laughter can be heard and the camera quickly turns around, revealing the "so-called Bowser Jr. cat" in his fort.
- The scene where Luigi shouts "I'm not gonna let you die on me, Mario!" to Mario, who has blood around his body (ketchup) and then Mario kicks Luigi away from him. This took place in the kitchen, but the fight sequence took place in the forest.
- An alternative scene with Kermit, where he delivers his dialogue before giving a short dramatic laugh. In the final cut, he ad-libs: "And you're going to be in my army!" before giving the laugh.
- Originally planned to be released in July of 2007, but all four parts were released on YouTube by next month.
- Filmed in one whole day.
- In Tyler and Kenny's reaction to the movie, there was an extended scene in the kitchen, where Kermit threatens the cameraman by pulling out a knife saying "Don't say it, or I'll kill you". Their mother didn't like that particular scene - when viewing the cut of the film - and asked that scene to be cut out (in attempt to appeal to more children). Yet in the final cut, you can vaguely see the knife in the foreground and Kermit holding the "knife" toward the cameraman.
- Throughout most of the movie, you can see Ricky and Tyler moving the characters around.
- Whenever Mickey flies or floats in the beginning, you can see a string supporting him (this could be deliberate); another time, you can see a crew member supporting behind the plush and when he yanks Mickey out of the shot - he runs away.
- In various scenes in the movie, you can see shadows of the camera.