The project, set to be completed in 2015, also includes a new library and archival space, a renovated entryway and other upgrades.
Approximately half of the expanded museum space will be dedicated to the Jim Henson Collection, which will feature recognizable puppets from Sesame Street, The Muppet Show, Fraggle Rock, The Dark Crystal and Emmet Otter's Jug-Band Christmas.
Featured icons will include Miss Piggy, Kermit the Frog, Fozzie Bear, Big Bird, Elmo Grover, Bert and Ernie.
The Center for Puppetry Arts will remain open during the renovation and expansion. Visit http://www.puppet.org for details.