In order for Krafties pets to level up, they will need to earn Experience in many ways, mainly through combat and crafting.

Ways to earn Experience

Crafting Experience (Crafting)

Doing some Crafting or assisting one
You receive exp for each craft you lead or assist. Exp earned per craft is the E cost per item/4
Casting Healing Spells,earns you 1Exp for every 1hp it heals

Combat Experience (Attack, Strength, Defense and Hitpoints)

Fighting Wilds and Shadow Creature (Choosing a "Battle Style" lets you train specific Combat skills)
Using Enchanted Runes

Mental Experience (Intellect, Focus and Fortitude)

Random/Any Experience

Being in Krafties Island when your pet's element matches the Elemental Torches

Issues With XP (Experience) Not Adding

Please note - If the Second Life or Krafties servers go down and you were in the middle of a Craft or Alchemy, we can look into replacing the lost XP. You will need to file a ticket and include your Krafties current stats (from local) and any local chat showing XP that should have been added. We will look into your Krafties data to see if the XP can be replaced. XP that you feel has been lost during battling wilds cannot be replaced.
Any time you add XP to your Kraftie, you need to wait at LEAST 5-10 minutes before logging off or changing pets. The Krafties data needs to sync to our server for it to be saved.

You can choose in which Combat skill your experience goes, by changing the Combat Style in the Pet Menu (under "Battles")
You can change the Active Combat Spell to stronger or weaker damaging spells in the Pet Menu (under "Battles")
Using a Healing spell often will earn you Crafting experience. The higher the Crafting Level the more hitpoints you heal
- Healing Spells are learned on crafting levels, view your pet's element page for more information

If you dislike getting all the battling details, you can turn off Spell Alerts in the Pet Menu (under "Settings")
You can actually change the volume of your pet in the Pet Menu (under "Settings")