Prince Harry was photographed nude during a game of 'strip billiards' in his Las Vegas hotel suite last month.
British-born 32-year-old Carrie Reichert claimed that her encounter with the British royal "wasn't romantic, just fun".
The beautician alleged that she was handpicked with nine other women to join Prince Harry's party, before he chose her to join him personally.
"We kissed, he was naked at the time, and pretty open," she is quoted as saying in The People.
"I was born in England and I'm pretty familiar with the royal family, but I didn't know the guys he was with. I was the only one who knew who he was. Everybody else was like, 'Who's that?' And I'm like, 'Oh my God, that's Prince Harry'."
Reichert explained that there was no security check when she joined the prince and that he later started a naked game.
"Harry was already undressed. It was just crazy. He looked actually delirious. There was a pool table and he was playing air guitar with pool sticks," she said.
"He was screaming out, 'Somebody get me a glove! I'm going to do a Michael Jackson impression!'"
She said that Harry liked giving "random naked hugs", and was "really friendly", adding that the evening was "not like an orgy going on, it was just sexy naked. It was like almost a game.
"He was trying to get everybody to get naked. That was the whole point of him being naked."
Speaking about her intimate moments with the royal, she said: "We kissed for 15 to 20 minutes. We kissed again and he said, 'That was great'.
"He told me I was beautiful and gorgeous, which was sweet. Then we kind of nonchalantly returned to the party and kept drinking."
Kate Middleton has reportedly offered her support to Prince Harry through his ongoing naked photo scandal.