The Dance Lounge is the second floor of the Night Club, where penguins can play a variety of arcade games, or just sit around. There are two arcade machines on opposite sides of the room, on which penguins can play either Astro Barrier or Thin Ice.
There are three clothed tables in the center of the room, each decorated with different objects. There's an assortment of greenery around the room, as well as two television sets supplemented by speaker systems.
- A minor bug during the Halloween Party 2017 caused the second TV screen to occasionally display the subtitles in a different language (Portuguese, perhaps?) than the subtitles on the larger screen.