The Palmer United Party leader expelled Senator Lambie’s chief of staff Rob Messenger after a meeting with the party executive on Wednesday night.
The move followed an, where the Tasmanian Senator criticised her party colleagues.
In a series of statements issued on Thursday, Mr Palmer urged Senator Lambie to either challenge or get on with the job.
"If what she says about being unhappy with her party’s leadership is true, she should make a challenge, otherwise get on with the job of representing the people who voted for her," he said.
He also criticised the disruptive influence of Mr Messenger.
“Senator Lambie is simply Rob Messenger’s mouthpiece,” he said.
“Last night our executive met and we have agreed to expel Rob Messenger from the party on the grounds of making false and misleading statements about our Senators.”
'I am amazed why Jacqui Lambie is being such a drama queen'
Mr Palmer also described Senator Lambie as a “drama queen”, urging her to present rational arguments instead of threats.
“Like all political parties, Palmer United makes policy in its party room where Senator Lambie has always been encouraged to bring any proposal forward to the group,” she said.
“She has never brought a proposal forward. It is inexplicable why she feels she doesn’t have her colleague’s support.
“Criticising me or her party colleagues is against party procedures.”
'If the party is going to survive then they’d better come up with a bloody better plan'
Comment has been sought from Senator Lambie and Mr Messenger.
Mr Palmer did not respond to enquiries made by SBS on Wednesday, following Senator Lambie’s appearance on the 7.30 program.
During the interview, Senator Lambie refused to rate the performance of her fellow senators, but said they had to “pull their socks up”.
“I’m not going to sit here and make my PUP senators or Clive Palmer look good when I’m not feeling that way about them,” she said.
“… If the party is going to survive then they’d better come up with a bloody better plan of attack than what they’ve been using.”