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Buddy

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The Buddy status is the status given to another penguin that is a friend of yours. Buddy is just a different way of saying friends, as most online games have a "friend" status rather than a buddy status.
Players can ask to be someone's buddy, by clicking on the other penguin's player card, then clicking on the smiley face on the bottom left of their Player Card. A pop-up box appears, which has two options: Yes and No. By clicking yes you will become their buddy. Clicking no obviously means you do not wish to be their buddy.An envelope appears when they have answered your request. The limited allowance of buddies is 100, but there is a glitch that allows players to have more buddies.
Functions
Becoming a buddy of another penguin is a useful thing. You can locate where your buddy is by clicking on their player card - via your buddy list -, then clicking on the "Find" button. Buddies are represented by smiley faces when choosing which server to enter when logging in. When a server has a Smiley Face rather than the default blue neutral face, it means your buddy is online on that server. However, a downside is that you cannot chat to your buddies between servers, only directly within a room. However, Billybob has mentioned on the CP Blog they are working on a way to create this function.
Rockhopper/Gary/The Penguin Band/Aunt Arctic/Cadence
On Rockhopper, Gary, The Penguin Band, Cadence, or Aunt Arctic's player card, there is no "Add Buddy" icon, instead there is a button to get a free background. The button looks like a cardboard box. About two years ago, if players clicked on Rockhopper's button, players would get a free eyepatch. But that stopped shortly before Rockhopper's free item was an eyepatch. Rockhopper once stated that if players have received his background, they're on his buddy list although players can't see where he is or when he is on like a player's normal friends.