Creating a party
To create a party in Ragnarok Online, use the /organize command.
/organize <partyname> or
/organize <"partyname1 partyname2">
For names containing spaces, put quotes around partyname.
After creating a party, you may invite players by 
-clicking their avatar and clicking on "Ask (player name) to join party".
Party settings
You can set the how drops and experience are distributed to the party.
- Drops
- Anyone in the party can pick up whatever loot a monster drops.
- Anyone in the party can pick up only their loot (open to anyone if not picked up within time limit).
- Evenly distributed between party members. Sometimes referred to as "Round Robin" or "Round the Table".
- Experience
- Even Share distribution of experience. This requires all party members to be within 10 base levels of each other. Active participants still get the bulk of the experience.
- Normal distribution. Whoever deals the most damage will gain the most experience.
Gameplay
In a party, party members will show up on the mini-map as squares. Also, you may view their whereabouts in the party window or the friend window if you click on a circle in the party window. Party members may also view the other players' health in the form of a green bar under the players' avatars. Party Spells may also be used to "buff" all players at once within a screen from the caster. For example, Blessing buffs any one player, while Magnificat will buff your entire party but can't be used on outsiders.
It is useful in many occasions like boss hunting, leveling in higher level mobs and PvP. It can also be an alternative for private conference chat by using the party chat and the party members only will have the privilege to read the chats of party members.