'Project Runway All Stars' First Look: Jay Z's Club Serves as Inspiration (Exclusive Video)

The Project Runway All Stars designers get some inspiration from an unlikely place this week: Jay Z's nightclub.

The challenge finds the season 3 competitors heading to the rapper's New York-based 40/40, where they learn they will be creating cocktail dresses inspired by actual cocktails. The winning look will be worn by All Stars host Alyssa Milano.

PHOTOS: 'Project Runway: All Stars' Season 3 Cast: Meet the Designers (Again)

The Hollywood Reporter has an exclusive look at the upcoming episode, titled "Sip Into Something Sexier," in which the designers scramble to finish their garments before the runway. And the insults fly as the competitors critique one another's designs, with one being called a "stripper costume" and another referred to as a "lady of the night" ensemble.

Interior designer Nate Berkus and designer Rebecca Minkoff served as guest judges in this week's episode, which airs at 9 p.m. Thursday on Lifetime. Watch the clip above.