The Medieval Party occurred between May 16, 2008, and May 25, 2008. It was described by Club Penguin (and many other penguins) as one of the biggest parties in their history . Most of the rooms were decorated and the Switchbox 3000 was moved to the Mine to control the dragon (which looked very similar to the Shrek Dragon). At the Mountain there was a "Magic Mirror" which operated in a way similar to that of a "Magic 8" ball. In the Gift Shop's catalog Penguin Style there was a dragon, knight and princess costume for member Penguins, medieval backgrounds, and a note from the party committee about preparing for this party hidden behind the clothing catalog. The free item was the Squire Tunic at the Dock. A wizard hat was also re-released at the Lighthouse. It was first released in the 2006 Halloween Party. This was the first party to include the exclusive room which is only available during special events called The Party. It was a Treehouse Fort and it was at the Forest.
- The party was named one of the biggest parties ever, reinforced by the fact that almost every room was decorated fully, and most of the locations were varied.
*It came back in May 2009.
*Not many things were changed in May 2009.
*The Magic Mirror, located at the Ski Hill, appeared for the first time at this party.
*The manhole in the Plaza was removed during the party.
*Many penguins pretened to be kings, queens, princes, princesses, court jesters and wizards in the Dance Lounge during the party.
*Many penguin knights "fought" the dragon in the Mine.