A close relation to musical chairs, this game uses towels - the "islands" - in place of the classic game's seats.
Before play begins, place a few old towels on the floor, making sure the group of towels offers just enough standing room for all of the players.
As in musical chairs, players must walk around in a circle whenever the music is playing. When the music stops, each player scrambles to stand on a towel (several players might be able to fit on one towel, depending on its size). Players are allowed to clutch onto a friend so that they can squeeze onto an island. Any player who can't stand with both feet on an island is out.
After each round, an island is folded (to reduce the available standing room) or removed entirely. You may want to switch to a hand towel or a washcloth for the final rounds. The last person standing on an island wins.