The fourth annual televised ceremony was taped on November 15, and aired over FOX affiliates on November 30, 1987.

One of the inductees that year was Jim Henson himself. For the occasion, Muppets from various productions sang a tribute to Jim, including several characters performed by Henson himself. Kermit hosted the segment (later joined by Miss Piggy) and Bernie Brillstein made a special video appearance. The special combined on-stage Muppet performances with video clips. Henson himself was among the performers, but the special as aired included edited cut-aways to footage of the Muppet creator laughing in the audience, fostering the illusion that Jim Henson was watching his own tribute. The other inductees that evening were Johnny Carson, Bob Hope, Jacques Cousteau, Ernie Kovacs, Eric Sevaried and Leonard Goldenson.