After you go through Rose Way, you reach Rose Town, where the townspeople are troubled by falling arrows.
Talk to the Townspeople
Arrows are falling from the sky in Rose Town, paralyzing anyone it hits.
Be sure to shop at the item store to get some better armor and a Fearless Pin. Restock any healing items you need.
In the item shop, jump onto the shelves behind the shopkeepers and go to the northwest end of the shelves. Jump to find a hidden chest.
In the north part of Rose Town, jump on the person's head to reach the house on the hill. Go into the house. The owner of the house will be upset if you take the treasures (two Fire Flowers). If you don't take the treasures, the chests will only have coins in them later. Go up the stairs, and jump on the bed to find a hidden chest. Then jump onto the switch, and go back outside so the owner of the house can come back in. If you left the treasures alone, the owner will tell you a secret. If you took the treasures instead, go inside and talk to the owner, then apologize for taking the treasures, and the owner will tell you the secret.
At the eastern house, jump up the crates next to the house and go down the chimney to reach a treasure chest above the shelves.
Go into the inn in the southwest corner of town to see a cutscene. When the kid asks you to prove that you're Mario, press the jump button. After the cutscene is over, jump out of bed and jump onto the save block to save. Go downstairs and there will be another cutscene.
Now you can leave town and go northwest to the Forest Maze.