I was actually wanting to know how to say this in Spanish when I realized that I didn't have a clear definition of it in my own language — English. My knowledge of this phrase comes from colloquial, experiential usage and/or dialogue I've heard while watching American films. A quick search of the web via Google led me to an Urban Dictionary entry for "Do you party?" but it had only one definition and that was "Do you do drugs?" My experience with this phrase hasn't included drug usage. When I've heard this phrase, it usually means something like:
"Do you know how to relax?"
"Do you know how to unwind?"
"Do you know how to have fun?"
"Do you know how to get loose?"
"Do you know how to get down?"
"Do you know how to have a good time?"
"Do you know how to get your groove on?"
"Do you know how to free your inhibitions?"
However, I can't find a source that actually defines this phrase. I did find a definition of "get your groove on" at a site called "What Does That Mean?" Its definition for this phrase is below:
It usually means dancing to music, finding your rhythm, etc. The idea comes from the grooves on vinyl records, and finding your rhythm with the “grooves” of the music.
The definition above was the most popular one and it certainly seems to at least somewhat support Jimmy Fallon's use of it in this video here:
You'll find other definitions on the "What Does That Mean?" site. However, they are, unquestionably, for a "mature" audience (i.e., 17+). If you're curious and such content doesn't bother you, click on the link below:
I tried to find examples of someone on video or in film asking the line, "Do you know how to party?" but didn't find one. However, revising this to just "know how to party" returned a lot more results.
In fact, you'll find a lot of songs with the word "party" in them and even some that include the phrase "know how to party" (more than 1,000 in AllMusic's database). One called "I Know How to Party" by Bryson Tiller certainly is using it with sexual connotations. The video for another one by the same name, but from a different artist — Indian Askin — definitely might make you wonder if "know how to party" is a reference to drugs.
Having said all of that, I am under the impression that the meaning of "Do you know how to party?" goes beyond just "Do you know how to get your groove on?" It appears to have many meanings and I would like to find the most authoritative source possible that lists all of these various meanings.
Overall, my search of the web was, for the most part, fruitless, but I must admit that it was also cursory, so I would imagine someone, somewhere has attempted to define this phrase. Rather than waste gobs of time searching for it myself, I thought I'd post a question about it here.
Also, would you consider this phrase colloquial, slang, and/or euphemistic?