Im not sure how to fix this issue I have been having with party chat.

Hi, my name is Marvina and I will be happy to help you.

I'm sorry you have this problem. Follow the instructions below for a solution.

To join or organize a group, you need the following:
An Xbox Live Gold subscription.

Voice chat through headphones or Kinect. See Xbox Live Chat on the Xbox 360 console for more information.
Text messaging. See Xbox Live Messaging on Xbox 360 for more information.

For more details, see Xbox Live Groups on Xbox 360.
If you're having trouble joining an Xbox Live group, someone in the group might have a network address translation (NAT) issue. To find out, ask group members to test their connection to Xbox Live.

Here we show you how to do it:
Press the Guide button  on your controller, go to Settings, then select System Settings.
Select Network Settings.
Select Wired network or the name of your wireless network (if prompted).
Select Test your connection to Xbox Live.

If you're signed in to a profile, select Yes when you're notified that testing your network connection will log everyone out, and then select Continue.

Information source (credits):
https://support.xbox.com/help/xbox-360/xbox-live/xbox-live-party-help

I hope I can help you solve it.

Best regards,
Marvina.

for the party chat make sure everyone in the chat's NAT is open, i was having similar issues with a friend because mine was open and his was strict, and when he fixed that, the party chat was working fine.

[View:http://www.speedtest.net/result/1480466590.png]

Im also having this issue, I can log into the dashboard and talk in party chat but i can not play games or anything without it kicking me from Xbox live. How do i fix this?

since yesterday myself and friends have been having issues with the party chat. Two things are happening, 1. everybody can only hear certain people, 2. Chat is all jarbled up and sounds robotic. Only way to fix is to hard reset the xbox. This has to
be an issue on microsofts side as they party chat has been having issues for the past week or so.

I'm getting this exact issue. Why does the XBOX One Party chat suffer so many issues? It's amazing how on the XBOX 360 there wasn't this many problems with the party chat. Now with the XBOX One it's been nothing but issues with the Party chat since the
system was released.

My NAT = OPEN

This is on the XBOX ONE

0X89231806 your network settings are blocking party chat.

I'm also tired of Microsoft constantly suggesting to do a hard reset on the system. It seems to be their answer to everything. Have a problem? Hard reset your system.

PLEASE FIX THE PARTY CHAT SYSTEM