When you say you want to hang out with friends or family, it means that you want to have some fun while spending time together. You and your friends could go hang out at a park, at a restaurant, or at a movie theater. Or simply at your place.
If you want to say that you spent some nice time with your friends last weekend, you could use this expression using the past tense form of hang, which is hung — “I hung out with my friends last weekend.”
***참고로 이 표현은 “햇볕에 말리다”라는 뜻도 있습니다. 미국영어에 언어유희를 사용한표현들이 많아요. 첫번째 강아지들 보이시죠? 두가지 뜻 (1/친구들이랑 시간을 즐겁게 보내면서, 2/ 햇볕을 쬐면서 말리다) 으로 해석하실 수 있어요. 🙂