In the wild, Cloud Penguins spawn in Extreme Hills biomes. They walk around and occasionally fly short distances. They are immune to fall damage and generally land softly anyway. If a player approaches or hits a Cloud Penguin, it will fly away from the player, traversing about 30 blocks before landing.
Disguise and ShearingEdit
If you are wearing a full set of armor in which every piece is either Flame Penguin or Cloud Penguin armor, approaching Cloud Penguins will no longer cause them to fly away. Since the Cloud Penguins are no longer in their "scared" state, you will be able to shear them for 0-2 Cloud Penguin Down. After being sheared, a Cloud Penguin will temporarily become scared and fly away once. It will also become unshearable for 30 seconds.
DropsEditCloud Penguins drop 0-2 light blue Penguin Skin on death.