In the wild Little Blue Penguins behave like other mobs. They only spawn on islands or coasts. When attacked, all other Little Blues around will get mad and attack you, but they only do a small amount of damage. Their call lengths vary based on their health.
When right-clicking any Little Blue Penguin with a raw fish, there is a 1/3 chance it will be tamed, even if it is angry. Tamed penguins wear red bow ties. You can shear a tamed Little Blue Penguin by right-clicking it with shears in your hand. There is a 66% chance it will drop blue or white Penguin Feathers, but a 33% chance it will become angry and attack; however, other penguins will not attack you in this situation. Note that tame penguins can be bred with wheat.
Little Blue Penguins will drop 0-2 blue Penguin Skins on death.
1.2.5e: Adapted to match the new feather system. No longer attack squid. Can be bred using wheat if tame.
1.2d: Wings and body adapted to be more realistic.
1.1c: Hitbox fixed according to size, and they now do less damage than Emperor Penguins.