The Villain Retreat is a little bit of paradise within the jungles on Seaside Island. As its name implies, it is a retreat exclusive to villains. The area is marked with party ropes and includes both accommodating settings and a buffet.
Activities one can enjoy at the Villain Retreat include conga lines, music, limbo dancing, shuffleboards and talent shows.
At one point, most of the villains from around Seaside Island visited the Villain Retreat at the same time, including Dr. Eggman. While all of the guests had a lot of fun there, Eggman's good time got interrupted when Sonic the Hedgehog arrived at the retreat and convinced him to help with a Bee Bot-related incident back home.