This was something that was discussed just a little when I proposed to Cherry. We never had any formal or official as it would traditionally be but we did have somewhat an informal gathering of close friends and family. I wouldn't have actually classified it as an engagement party but that is more or less what it was, it was just extremely casual. This if I remember correctly was actually a time for the families of the couple to meet, many times for the first time.
Josh and I didn't have an engagement party, and we aren't planning to. Our parents have met, and are on two completely ends of the spectrum from one another to ever clinch any form of routine gathering. We've been together for so long that it wasn't really a big deal for a lot of people to find out we were engaged. They were excited, yes, but we didn't have a get together to inform everybody. Plus, we're poor broke college students right now and really couldn't afford something of that nature.