The guy is giving them away at Booga Bay (far right section of the island).
You need to go to talk to the man next to the grass skirt stand and he will give you the grass skirt.
The island actually requires you to look like a "native islander" (wearing a grass skirt will do).
you go to the far right and click on the hula skirt/ grass skirt stand to get one
Lead him back to the grass skirt island and get the medal!
the grass skirt
The only way to get a grass skirt on Poptropica is to ask the man on Shark Tooth Island. He is to the right of the Ancient Ruins and the left of Booga the shark.
In Booga Bay
the grass skirt guy after you get the medel on shark tooth island
Oddly enough, it is strictly a decoration. (Unlike the grass skirt, which is required in the game.)
you have to wear the grass skirt
You wear a grass skirt from a stall
Get the milk, bone, and the key ingredient with a grass skirt. .