Students who attended the weekend party which was hosted by Kappa Sigma wore Asian-style clothing and mimicked stereotypical Asian accents.
The invitation to the event, at first named 'Asia Prime' told attendees 'We look forward to having Mi, Yu, You and Yo Friends over for some Sake. Chank You.'
According to the New York Daily News, the invitation also contained a meme based on the former North Korean leader Kim Jong Il''s character in the movie 'Team America: World Police'.
The party's name was later changed to 'International Relations' after opponents on campus got wind of the event.
Angry students posted dozens of fliers around Duke''s campus urging people to boycott the 'racist rager'.
The party hosted on 1st February however went ahead as planned, but ongoing anger over the event prompted the parent organization of Kappa Sigma to suspend the Duke chapter on Wednesday.
The party also led to protests on campus, with Asian student groups calling for an apology and a cultural shift at the prestigious school in Durham, N.C.
They also posted Facebook photos of the event, with attendees faces blurred, around campus, the report said.
At an on-campus rally on Wednesday, students from a variety of racial backgrounds chanted 'racist parties make no sense', it said.
According to the report, the fraternity this week apologized for hosting the party, saying the event should have been 'completely canceled'.
School officials said they were sitting down with Kappa Sigma to discuss how to deal with fallout from the party, it added.