Pazopanib Hydrochloride With or Without Bicalutamide in Treating Patients With Prostate Cancer That Did Not Respond to Hormone Therapy

Inclusion Criteria: * Histologically or cytologically confirmed prostate cancer * Must have received prior hormonal therapy, including either medical (luteinizing hormone-releasing hormone \[LHRH\] agonist) or surgical (orchiectomy) castration * Castrate level of testosterone (\< 50 ng/dL) * Patients treated with LHRH agonists must continue or restart this therapy * Must have radiological documentation of either measurable or non-measurable disease * Must show documented progression of prostate cancer while on hormonal therapy as indicated by PSA increase * Rising PSA is defined as ≤ 2 consecutive rises in PSA taken ≥ 1 week and ≤ 2 months apart * PSA \>= 5 ng/mL * No known brain metastases * Eastern Cooperative Oncology Group (ECOG) performance status (PS) 0-2 OR Karnofsky PS 60-100% * Life expectancy \> 3 months * White blood cell (WBC) \>= 3,000/mm\^3 * Absolute neutrophil count (ANC) \>= 1,500/mm\^3 * Platelet count \>= 100,000/mm\^3 * International normalized ratio (INR) =\< 1.2 * Activated partial thromboplastin time (PTT) =\< 1.2 times upper limit of normal (ULN) * Bilirubin normal * Aspartate aminotransferase (AST) and alanine aminotransferase (ALT) =\< 1.5 times ULN * Creatinine normal OR creatinine clearance \>= 60 mL/min * Fertile patients must use effective contraception * No history of allergic reactions attributed to compounds of similar chemical or biological composition to pazopanib hydrochloride or bicalutamide * Proteinuria =\< 1+ on 2 consecutive dipsticks taken \>= 1 week apart * QTc \< 480 msec * No significant electrocardiogram (ECG) abnormalities * No poorly controlled hypertension (systolic blood pressure \[BP\] \> 150 mm Hg or diastolic BP \> 90 mm Hg) * No condition (e.g., gastrointestinal \[GI\] tract disease resulting in an inability to take oral medication or a requirement for intravenous (IV) alimentation; prior surgical procedures affecting absorption; or active peptic ulcer disease) that impairs the ability to swallow and retain pazopanib hydrochloride tablets * No serious or nonhealing wound, ulcer, or bone fracture * No abdominal fistula, gastrointestinal (GI) perforation, or intra-abdominal abscess within the past 28 days * No cerebrovascular accident within the past 6 months * No myocardial infarction, cardiac arrhythmia, admission for unstable angina, cardiac angioplasty, or stenting within the past 12 weeks * No venous thrombosis within the past 12 weeks * No New York Heart Association (NYHA) class III-IV heart failure * Patients with a history of NYHA class II heart failure who are asymptomatic on treatment are eligible * No concurrent uncontrolled illness, including, but not limited to, ongoing or active infection * No psychiatric illness or social situation that would preclude study compliance * Recovered from all prior therapy * Prior neoadjuvant or adjuvant chemotherapy allowed * More than 4 weeks since prior chemotherapy (6 weeks for nitrosoureas or mitomycin C) or radiotherapy * At least 4 weeks since prior antiandrogens * At least 4 weeks since prior surgery * No prior bicalutamide therapy lasting \> 3 months in duration * Concurrent steroids allowed if no change in steroid dosage within the past 4 weeks * No other concurrent investigational agents * No concurrent therapeutic warfarin * Concurrent low molecular weight heparin or prophylactic low-dose warfarin allowed * No concurrent combination antiretroviral therapy for human immunodeficiency virus (HIV)-positive patients