The Great Fusilli is the name of the antagonist, an alligator which runs a personal stage searching for potential stars to join his act where he promises them fame and fortune.
It is then revealed that he is actually turning the 'stars' into puppets which he used to control and act for the performances. Muriel, the protagonist's female owner got turned into one in this episode.
The final episode of the season, The Great Fusilli drives his truck into the small town of Nowhere to search for new 'stars' which he then entices Muriel, her husband Eustace and the protagonist himself (Courage) to joining.
However later on Courage found out the secrets of the stage, when he discovered a room full of puppets within the stage. It is too late however as both Muriel and her husband then turned into puppets later on.
The antagonist later got turned into one himself.