The King joined a carnival procession through the capital of the Bahamas, picking up a pair of maracas and joining dancers in Nassau’s Parliament Square.
Moving to the beat of a marching band, Charles embraced the local Caribbean culture.
The monarch, who has previously danced the Samba in Brazil and tried ballroom steps in New Zealand, displayed his moves against a complex political backdrop.
His nine-day tour of the Caribbean comes amid renewed calls from island nations for Britain to apologise for its role in selling enslaved people for profit and to pay reparations.
Hours after arriving in the Bahamas on Tuesday, he acknowledged the "great suffering of the past" and confirmed that Commonwealth leaders will address the legacy of slavery at an upcoming summit he is due to open in Antigua next week.
A small protest took place among the crowds in Parliament Square, where activists held placards bearing the words "Pay us what you owe us". The demonstrators were quickly moved on by local police.
The King was given a demonstration of the Bahamas' Junkanoo festival, a spectacle usually held on Boxing Day and New Year’s Day that features floats and dancers in elaborate costumes and head dresses.
Having watched the performance for several minutes, Charles was presented with maracas in the nation's colours before stepping into the parade to sway gently alongside the dancers.
Earlier, Charles burst out laughing when he saw himself depicted as a boxing champion on T-shirts worn by boxers during his visit to a Bahamas academy on Wednesday.
Charles, shown with rippling muscles on the shirts, met the pugilists as they showed off their skills in the ring.
The shirts were the work of Jermaine Gibson, president and chief executive of the All-Out Boxing Club, who was wearing one of his own creations. His club is based on the neighbouring island of Grand Bahama.
“Ha!” said the King, pointing and laughing at the shirts.
“We made one for you, I had it made last night,” Mr Gibson told him.
Accepting the gift, Charles, still laughing, replied: “How generous.”
Afterwards Mr Gibson said: “He loved it, he loved it. He said it was really good and we gave him one of his own.”
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