The 82-year-old businessman was introduced to the group as Big Brother's 'Un-Pharaoh' and set the group two challenges that would eventually name one of them the heir to his throne.
For the first task, housemates were wrapped from head to toe in bandages to become Egyptian mummies, before being laid down flat on their backs in the garden and instructed to stand up.
Watch the rise of the mummified housemates below:
As the first six on their feet, Paddy Doherty, Bobby Sabel, Lucien Laviscount, Darryn Lyons, Tara Reid and Sally Bercow were invited to play a game of 'Musical Sandstone' - eventually won by the American Pie actress.
Reid was then dressed in lavish Egyptian attire and later, as the 'Un-Pharaoh', commanded the rest of the inmates to bark like dogs, scream and hug each other.
Although designed as a light-hearted distraction, the Egyptian task has caused tensions to rise amongst the housemates, with Pamela Bach-Hasselhoff blasting Jedward for pushing her over during the mummy challenge and Lyons accusing Sabel of throwing the game of 'Musical Sandstone' to Reid.
It was previously reported that Al-Fayed would use his visit to the house to confront 'Mr Paparazzi' Lyons over the death of his son Dodi and Princess Diana.
Watch Tara Reid rule over the housemates below: