This level has a lot of bouncy mushrooms. As you find the K KONG letter, you also see a Flaming Tiki Buzz floating up and down over it. Wait until the Flaming Tiki Buzz is moving up and then just low-jump across to get the letter and continue on your way.
After swinging your way through a log, pound on a trapdoor to drop into a hidden area. Here you can pick up a Puzzle Piece. Pound the ground to make a mushroom grow so you can jump back up to the main platform.
Jump your way up a series of mushrooms to a swinging platform. Clear off the Tiki Goons and then wait for it to swing to the left. Run and hover-jump off the left side to get the Puzzle Piece. Be careful not to hit the spikes next to the piece. Drop onto the mushroom below, and bounce back to the platform so you can keep going.
Now roll off the right side of this platform, and jump in midair to get the O KONG letter; then land on the platform with a couple of Tiki Goons.
When you reach the area with grassy layers you can climb on, jump across to the right side, avoiding the Flaming Tiki Buzz in the process. Then jump up to the grassy layer and climb it, heading left to find a Puzzle Piece.
Continue to the right and jump across a series of Bopapodamuses. You must bounce off the last one to get high enough to reach the N KONG letter.
As you are crossing these three Bopapodamuses, jump on each of them four times. This will cause them to fall down. Once all three of them are gone, collect a Puzzle Piece on the platform to the right of the Bopapodamuses.
Jump across to the second of a pair of swinging huts. Get down to the bottom and drop where there is a line of bananas; you land in a barrel. This will blast you to a bonus area where you must shoot back and forth between barrels to clear out the coins and bananas to get your next Puzzle Piece.
You will eventually arrive at an area with lots of mushrooms. Bounce your way up along the left side to get a Puzzle Piece floating there.
After getting the Puzzle Piece, jump back to the same mushroom and hover-jump across to the left to get the G KONG letter, which is on a hanging platform.
Once back in the batch of mushrooms, work your way to the bottom to find the last Puzzle Piece. You must drop onto it and then bounce off the tongue of a plant to get back up. Finally, bounce your way up to the top of all the mushrooms, collecting coins and bananas along the way. Hit the Slot-Machine Barrel at the very top to complete the level.