Party alignment is a new alignment restriction that we have created at the level of the character party. When you start a new game in ToEE, you must select a party alignment, which is one of the same nine alignments you choose for character alignment. Your selection of party alignment will restrict what alignments of characters you can add to your party. You can only pick character alignments that are at most one step (vertical or horizontal, but not diagonal, on the alignment axes) away from the party alignment.

For example, if you select True Neutral as your party alignment, then the five alignments of True Neutral, Neutral Good, Lawful Neutral, Neutral Evil and Chaotic Neutral are available for characters. If you select Lawful Neutral, then the character alignments of Lawful Neutral, Lawful Good, Lawful Evil, and True Neutral are available. And if you select, Lawful Good, then only Lawful Good, Lawful Neutral and Neutral Good are available. True Neutral characters are not allowed in Lawful Good parties, because True Neutral is two steps away from Lawful Good.