The boys were given an hour to prepare a dance routine and learn all the words to the gay anthem. Liam dressed as a cop, Jonathan was an Indian, Brian got kitted out as a biker and Billi was given a sailors uniform to wear.
Each boy had to perform a solo and learn the correct hand signals to go with the choreographed performance. While the boys practiced in the garden, the other housemates were locked in the bedroom, unaware of the challenge that had been set.
As the boys sat learning the words in the garden, Jonathan gave Brian some words of encouragement, informing him that he was "the man" and that the others would follow his lead.
Brian responded: "I've surprised myself with how good my memory is."
When Big Brother unlocked the bedroom door, the other housemates dashed to their seats in front of the stage, screaming and whooping with delight at the lads' costumes.
Ziggy joked: "Guys, if there is anyway of breaking the ice - this is it."
Once the boys began their routine, the housemates cheered and laughed as each member of the troupe took their turn to perform a solo.
Gerry was so impressed with the routine that he grabbed some underwear from a nearby clothes horse and chucked them at the performers.
After finishing their performance, the guys were mobbed on stage by their fellow housemates and Big Brother announced that the Village People had successfully completed the task.
All four members of the group will now receive a luxury shopping budget next week.