The exclusive production – Inspired Silliness – will debut onboard the line’s latest ships, Sky Princess and Enchanted Princess.
Each 30-minute performance will feature singers and dancers “bringing to life the comedy, iconic music and puppetry” of Henson, which Princess said would appeal to “guests and families of all ages”.
The show will open shortly on the 3,660-guest Sky Princess as the ship sails the Mediterranean before spending a season in the Caribbean.
Inspired Silliness will then be performed onboard sister ship, Enchanted Princess, following her June 2020 launch in Southampton.
Tony Roberts, Princess Cruises vice-president UK and Europe, said: “The introduction of Inspired Silliness showcases our continued commitment to offering new, exclusive and innovative experiences for all generations.
“Jim Henson is a name recognised all over the world and by combining his legendary puppetry with memorable music, comedy, spectacular visuals and our talented team of singers and dancers, guests will be in for a one-of-a-kind show.”