First Carpet
Rugs and Kisses features a Persian theme, with your Sackboy character able to travel via flying carpet. When the level opens, walk left and drop through the open gap onto the flying carpet. Ride the carpet left and collect the available point bubbles before floating down and continuing left over more burning fires. Fly left as far as you can until you reach a dead end. Float up and then jump off the carpet and through an open gap, landing once more on solid ground.
First Lamp
After getting off the first carpet, go right and then ride the elevator up through the tower to emerge on the upper level. Collect another point bubble and then drop back down to where you parked the carpet. Stand on the bridge above the carpet and then place a genie lamp sticker on the lamp sign above your head to gain access to Thread Bear's Emporium of Fine Fabrics. Walk left, strike the gong and then walk back to the Emporium sign and jump up the two platforms to grab the hanging chain. Pull the chain down to the ground to open a gate and pass through to the next area.
Second Lamp
Keep moving left and then jump up the two steps to grab another hanging chain. Pulling the chain opens a trap door above it that drops a point bubble and a second genie lamp sign; apply another genie sticker on the sign and then quickly run to the right. Hop up the newly created platforms and then jump onto the spinning carpet rolls.
Third Lamp
Ride the spinning carpets up and to the right until you reach the next landing. Jump off the carpet and then pull down the hanging chain to drop another genie sign, which requires the third genie sticker. Placing the third sticker on the lamp creates additional platforms. Use the hanging chain to swing over to the new platforms. Ride another spinning carpet to the left, jumping off into the open landing to grab a point bubble.
Fourth Lamp
Jump back into the spinning carpets and move up, right and then back to the left. Jump onto another landing with a giant cat head sticking out of a basket. Jump off the cat's head to pull another hanging chain, revealing the fourth genie lamp. Place another lamp sticker and then jump across to the new platforms over to a landing on the right. Strike the gong to save your progress and then enter the palace.
Fifth Lamp
Drop onto your second flying carpet and then ride it down and to the right. Avoid spiked walls, pots spilling fire and the occasional robotic palace guard. Keep moving right until you find the fifth lamp sticker switch. Place the fifth sticker and then jump over to the new platforms. Continue advancing right, through the checkpoint and into the lamp to clear the level.