I had trouble with this too because I missed a room compleatly. I suggest the same probobly happaned to you as well.
Spoiler
Get hammer if you don't already. It is right and up from the campfire in an opened barrel. 1. Go left from the boy&campfire and you should be back in the forest. 2. The path going south looks like it is blocked off with trees, but you can now go down there. 3. Go south and you will find a bay. Down in the corner there is a box. 4. Use hammer with box. 5. Someone has put poor kitty inside. Bad peoples! 6. Take kitty back to the boy.