The Prospect Park Carousel dates from 1912, when it began its life in Coney Island. It was crafted, in large part, by horse carver Charles Carmel. Today, this carousel is only one out of a dozen Carmel designs remaining. It features 51 carved wooden horses, a giraffe, a deer and two chariots with dragons spewing forth fire and flowers. In 1952, the Carousel was moved to Prospect Park, where it was in operation until 1983 when it broke down. In 1987 the Prospect Park Alliance raised $800,000 for its renovation. Carousel artist and conservator Will Morton VIII restored its colors to its original brilliance. The Carousel is located at the Willink entrance at the intersection of Empire Boulevard and Flatbush Avenue and is maintained by the Prospect Park Alliance. The Carousel is available for party rentals.

There have been three carousels in Prospect Park. The first, a "Yacht Carousel," dated to 1874 and was sited on the Prospect Park Lake. Images of the carousel show a circular merry-go-round contraption propelled by wind via nine large boat masts. A second carousel, located at the edge of Long Meadow, was destroyed by fire around 1932. The current Prospect Park Carousel was first opened in 1952. Its 56 figures were carved by Charles Carmel (1865-1931) around 1912. Carmel was a Russian immigrant who also pioneered the Coney Island-style of carousel, distinguished by its flamboyant details. The carousel was originally owned by the McCollough Brothers, who operated it at Coney Island at Surf Avenue and West 8th Street until they turned it over to Prospect Park in 1952. When the carousel was renovated in 1990, it was the first major project undertaken by the nascent Prospect Park Alliance. Prospect Park's carousel is also notable for its Wurlitzer organ, loud enough to attract passersby from the street, much to the consternation of Lucio Schiavone, the carousel's manager.