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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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MIC-Info: RSA-MD5,RSA,
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 quU10gPnubXUZVmVdUqotw==

<SEC-DOCUMENT>0001179110-08-011539.txt : 20080606
<SEC-HEADER>0001179110-08-011539.hdr.sgml : 20080606
<ACCEPTANCE-DATETIME>20080606112816
ACCESSION NUMBER:		0001179110-08-011539
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20080604
FILED AS OF DATE:		20080606
DATE AS OF CHANGE:		20080606

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			IPARTY CORP
		CENTRAL INDEX KEY:			0001078383
		STANDARD INDUSTRIAL CLASSIFICATION:	RETAIL-MISCELLANEOUS SHOPPING GOODS STORES [5940]
		IRS NUMBER:				134012236
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		270 BRIDGE STREET, SUITE 301
		CITY:			DEDHAM
		STATE:			MA
		ZIP:			02026
		BUSINESS PHONE:		6173230822

	MAIL ADDRESS:	
		STREET 1:		270 BRIDGE STREET, SUITE 301
		CITY:			DEDHAM
		STATE:			MA
		ZIP:			02026

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			VASSALLUZZO JOSEPH
		CENTRAL INDEX KEY:			0001180654

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-15611
		FILM NUMBER:		08884726

	BUSINESS ADDRESS:	
		STREET 1:		500 STAPLES DRIVE
		CITY:			FRAMINGTON
		STATE:			MA
		ZIP:			01702
		BUSINESS PHONE:		3019988100

	MAIL ADDRESS:	
		STREET 1:		1626 EAST JEFFERSON STREET
		CITY:			ROCKVILLE
		STATE:			MD
		ZIP:			20852
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>edgar.xml
<DESCRIPTION>FORM 4 -
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>4</documentType>

    <periodOfReport>2008-06-04</periodOfReport>

    <notSubjectToSection16>0</notSubjectToSection16>

    <issuer>
        <issuerCik>0001078383</issuerCik>
        <issuerName>IPARTY CORP</issuerName>
        <issuerTradingSymbol>IPT</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001180654</rptOwnerCik>
            <rptOwnerName>VASSALLUZZO JOSEPH</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>270 BRIDGE STREET</rptOwnerStreet1>
            <rptOwnerStreet2>SUITE 301</rptOwnerStreet2>
            <rptOwnerCity>DEDHAM</rptOwnerCity>
            <rptOwnerState>MA</rptOwnerState>
            <rptOwnerZipCode>02026</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
            <officerTitle></officerTitle>
            <otherText></otherText>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable></nonDerivativeTable>

    <derivativeTable>
        <derivativeTransaction>
            <securityTitle>
                <value>Stock Options (right to buy)</value>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>0.29</value>
            </conversionOrExercisePrice>
            <transactionDate>
                <value>2008-06-04</value>
            </transactionDate>
            <transactionCoding>
                <transactionFormType>4</transactionFormType>
                <transactionCode>A</transactionCode>
                <equitySwapInvolved>0</equitySwapInvolved>
            </transactionCoding>
            <transactionAmounts>
                <transactionShares>
                    <value>25000</value>
                </transactionShares>
                <transactionPricePerShare>
                    <value>0.29</value>
                </transactionPricePerShare>
                <transactionAcquiredDisposedCode>
                    <value>A</value>
                </transactionAcquiredDisposedCode>
            </transactionAmounts>
            <exerciseDate>
                <footnoteId id="F1"/>
            </exerciseDate>
            <expirationDate>
                <value>2018-06-04</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>25000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>290000</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeTransaction>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Stock options vest quarterly in equal parts over one year, vesting in full on June 4, 2009.</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Joseph Vassalluzzo</signatureName>
        <signatureDate>2008-06-06</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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