Singapore dry dock as Pacific Encounter; installed Twin Racer waterslides and the P&O Edge Adventure Park, including a zipline and climbing activities, along with statutory maintenance, technical upgrades and public-area improvements.

Pacific Encounter underwent the first stage of her transformation from the former Princess Cruises ship Star Princess at Sembcorp Marine in Singapore. The project introduced P&O Cruises Australia's branding and identity, including new hull and funnel markings, while extensive interior work reshaped the ship for the Australian market. The multi-story atrium was redesigned as The Lobby, and new or substantially remodeled venues included the Encounter Hotel, Waterfront Restaurant, Dragon Lady and Angelo's, along with new dining concepts associated with Luke Mangan and 400 Gradi. Public spaces received new carpeting, artwork, furnishings and décor as part of the conversion to P&O's contemporary Australian fleet design.

Carnival Encounter, then Star Princess, completed a multimillion-dollar two-week refurbishment at Victoria Shipyards. The project redesigned the youth centers as Camp Discovery in partnership with Discovery Channel, enhanced Sabatini's, refreshed spa treatment rooms and the fitness center, installed Princess Luxury Beds throughout the accommodations, renewed carpeting and upholstery, expanded retail offerings and applied Princess' hull livery.

Carnival Encounter, then operating as Star Princess, completed a major refurbishment in San Francisco that introduced several features found aboard newer Princess ships. The project added The Sanctuary adults-only retreat, a redesigned Piazza-style atrium with the International Café and Vines wine bar, the Crown Grill steak and seafood restaurant, a Movies Under the Stars poolside screen, a new Internet café and library, upgraded boutiques and flat-screen televisions in staterooms. Mechanical and navigational maintenance and other cosmetic improvements were also completed during the dry dock.

Carnival Encounter, then operating as Princess Cruises' Star Princess, underwent extensive emergency fire-damage repairs at Lloyd Werft in Bremerhaven, Germany, following a major balcony fire on March 23, 2006, while sailing between Grand Cayman and Jamaica. The fire spread across the port-side accommodation areas, severely damaging 79 staterooms and affecting another 218 through fire, smoke or water. Repairs involved rebuilding damaged passenger cabins and balconies, replacing fire-damaged structural components, restoring interior finishes and furnishings, and repairing affected electrical and accommodation systems. The ship also received improved balcony fire protection, including sprinkler installations and replacement of combustible balcony furnishings and partitions with safer materials. Before crossing the Atlantic, Star Princess underwent temporary repairs at Grand Bahama Shipyard in Freeport, Bahamas. Permanent repairs were completed at Lloyd Werft, allowing the vessel to depart Bremerhaven on May 13 and resume passenger service from Copenhagen on May 15, 2006.