Playing Palworld with friends is pretty straightforward until the person hosting the world needs to log off. Suddenly, nobody else can continue building, catching Pals, or exploring until the host comes back online.

That's one of the biggest differences between regular co-op multiplayer and a dedicated Palworld server. Both let you play with friends, but they work differently when it comes to player limits, performance, and keeping your world online.

In this guide, we'll compare both options and help you figure out which one makes more sense for your group.

How Does Palworld Co-op Multiplayer Work?

Palworld's built-in co-op mode lets you play with up to three friends, for a total of four players, without setting up a separate server.

Getting started is simple. Select your world, open its settings, and enable Multiplayer. Once you're in-game, open the Options menu to find your invite code. Share it with your friends, who can then select "Join Multiplayer Game (Invite Code)" from the main menu.

The main limitation is that the world runs directly through the host's game.

When the host closes Palworld, the multiplayer session ends. Everyone else has to wait until the host starts the world again.

Co-op works well for smaller groups that usually play together, but it can become frustrating when everyone has different schedules.

How Does A Palworld Dedicated Server Work?

A dedicated Palworld server runs independently from the game itself. Instead of one player hosting the world through their game client, a separate server handles the multiplayer world.

This means your friends can connect whenever they want, provided the server is running. Nobody needs to keep Palworld open just so everyone else can play.

Dedicated servers also support up to 32 players, making them useful for larger groups and communities.

There are two main ways to run one:

  • Self-hosting: Install the Palworld dedicated server software on your own PC or another machine. You'll need to manage the server, network configuration, and keep the machine running.
  • Dedicated hosting: Rent a server from a provider that handles the hardware and network infrastructure, allowing you to manage your world remotely.

Both methods use dedicated server software. The difference is where that software runs and who handles the maintenance.

Palworld Co-op vs Dedicated Server: Key Differences

The biggest differences come down to five things:

  • Player limits: Co-op supports four players, including the host. Dedicated servers support up to 32.
  • Server availability: Co-op requires the host to be playing. Dedicated servers can remain online independently.
  • Connection method: Co-op uses invite codes, while dedicated servers use IP addresses or the community server list.
  • Hardware: Co-op uses the host's gaming device. Dedicated servers run a separate server process.
  • Cost: Co-op doesn't require separate server hosting. Dedicated servers can be self-hosted or rented for a monthly fee.

One important detail is that a dedicated server doesn't automatically mean better performance. The hardware running it still needs enough resources to handle your players, bases, and active Pals.

Does Palworld Crossplay Work With Both Options?

Yes! Palworld crossplay supports players across Steam, Xbox, PlayStation 5, and Mac.

Both co-op worlds and dedicated servers can support players from different platforms, but the connection process isn't identical.

Co-op players can join using an invite code, while PC players can connect directly to dedicated servers using an IP address and port.

Xbox and PlayStation players, however, need the dedicated server to appear in the Community Server list.

This doesn't mean you have to let random players join. You can configure a server password to keep your world private while still allowing your console friends to find it.

Is A Dedicated Palworld Server Better For Performance?

Hosting a co-op world puts additional work on the same device you're using to play Palworld. Your PC has to run the game while handling the multiplayer session.

This can become noticeable when your group builds larger bases, assigns more Pals to work, or explores different areas simultaneously.

A dedicated server moves that workload to a separate server process. With rented Palworld hosting, the server runs on hosting hardware instead of depending on your gaming PC.

However, performance still depends on CPU power, RAM, player count, and world activity.

However, performance still depends on CPU power, RAM, player count, and world activity. Understanding the Palworld server RAM requirements is important when choosing a server, as larger player counts, more active bases, and bigger worlds can significantly increase resource usage.

Dedicated servers also provide additional administration options, including passwords, player limits, difficulty adjustments, and gameplay multipliers. Many of these can be customized through your Palworld server settings.

Can You Transfer A Palworld Co-op World To A Dedicated Server?

Yes, but transferring an existing co-op world requires more than simply copying a save file.

Your co-op world is stored on the host's device, while dedicated servers store their own world and player data.

When migrating, the original host's character can be particularly problematic because dedicated servers use different player identifiers. Without properly converting the player data, the host may be asked to create a new character.

Other players' progress can also be affected if the migration isn't handled correctly.

Before transferring anything, create a complete backup of your existing world. Having a reliable Palworld world backup is important when moving saves between hosting methods.

A successful migration can preserve your existing world, bases, and progress, allowing your group to continue playing without starting from scratch.

Should You Choose Palworld Co-op Or A Dedicated Server?

For two to four friends who usually play at the same time, regular co-op is probably enough. It's free to host, takes very little setup, and gives you access to the same core Palworld gameplay.

A dedicated server makes more sense when your group starts growing or people want to play at different times.

It's also useful for long-term worlds where players are constantly expanding bases, breeding Pals, and progressing independently.

Even a group of just three friends can benefit from dedicated hosting if everyone has different schedules.

Ultimately, the deciding factor isn't just player count. It's how much freedom your group wants when accessing the world.

Start Your Palworld Dedicated Server With Pine Hosting

Setting up a dedicated Palworld server doesn't have to involve SteamCMD, port forwarding, or manually configuring server files.

With Pine Hosting, your server is deployed with Palworld installed and can be managed through our game panel. You can start your server, customize settings, manage backups, and access your server files without maintaining a separate PC.

Once your server is running, you can find its IP address and port in the Server Info section of the Console tab. Share those details with your friends so they can connect, or configure a community listing for supported console connections.

Our dedicated Palworld hosting gives your group a persistent multiplayer world that doesn't depend on one player being online, making it easier to keep exploring, building, and catching Pals together.