1. To joke or fool around; to banter or exchange good-humored jokes. I know you all like to josh around, but we really need to focus and get this project finished ASAP. I'm sorry, I didn't intend to cause offense. I was only joshing around with you.
2. To tease someone in a good-humored, bantering manner. In this usage, a noun or a pronoun is used between "josh" and "around." The older employees liked to josh me around for my first couple of weeks on the job. You really shouldn't josh the customers around like that. A lot of them don't realize that you're joking.