The Dancing Banana is a yellow banana with green limbs and a red mouth, that has been highly popularized on YouTube, Newgrounds and the like, even appearing in an episode of Family Guy.
The Dancing Banana is just that - a sprite animation of a banana that dances, often accompanied by the Peanut Butter Jelly Time song. He appears to have some sort of relation to the Dancing Broccoli, among other healthy food items.
In M.U.G.E.N, Dancing Banana has been created by Ironcommando. As to be expected, it's appearance is near-identical to the actual, popularized animation, even having said animation as a win pose.
Dancing Banana is a surprisingly balanced character in comparison to Ironcommando's other characters, such as 20000 and A-Bomb. Its A.I. can be a bit tough to beat though, but the difficulty can be altered through an additional .txt file included with the character, along with the "child-friendly" option. Most of his Hypers are fairly overpowered, especially the level 1 Hypers that use only 1000 Power, yet take nearly half of the opponent's Life away. In contrast, however, the Dancing Banana's regular attacks are actually weaker than average, but is easily made up for with their incredible combo ability.
As mentioned above, Dancing Banana isn't like Ironcommando's other characters, but seeing as this is still Ironcommando's character, there are of course some cheap elements, like his special A.I. setting that makes him Rare-Akuma cheap, and the last two palettes; one of which allows the usage of the Shun Banana Satsu - an instant-KO attack that mimics the original Shun Goku Satsu, courtesy of Akuma, while the second is a "ghost" version completely invulnerable to projectiles and throws.
When Dancing Banana is K.O'd, Donkey Kong appears and eats it (this is actually a reference to a scene in "Mortal Kombat Mishaps"). This does not occur when either the Rotten Banana or Ghost Banana palettes are selected.
As mentioned above, Dancing Banana also has a hidden A.I. setting in his config. If you set Dancing Banana's A.I. level to 9001, the A.I. will constantly spam hypers due to having an infinite power bar, and is immune to most attacks.