The Arena is a new feature in the Sakurajima update for Palworld that allows players to have PVP duels with their party of Pals, but it is not as simple as a menu option. Here is how to find the Arena in Palworld.
How to Unlock the Arena in Palworld
Screenshot by Prima Games
The Arena can be found on a small island south of Dessicated Desert on the eastern side of the game’s map. It can be surprising how small the landmass for the Arena is, but the island only contains a fast travel point and a giant doorway in which to interact with.