Meaning: The moon looked like a lantern in the sky, shining down on the Earth.
Choice of Words: "Moon" is a natural object that orbits the Earth and reflects light from the sun. "Smiled" is used to describe the appearance of the moon. "Down" means from a higher place to a lower place. "Like" means similar to. "Lantern" is a device that produces light. "Sky" is the upper part of the atmosphere that we can see.