Mushroom Forest is a home to many enemies, secret areas, and loot. Numerous red/orange mushrooms dot the landscape along with many trees. One large river runs through the entire forest, with a few bridges of fallen trees granting access across it.
Mushroom Grotto can be accessed via a secret tunnel on the left side of the map. It houses numerous Elder Shrooms, and serves as a good place to level up early in the game.
All three members of the Shroom family reside in Mushroom Forest. Baby Shrooms reside on the outer edges of the forest, Shrooms populate the inner portions/main path, while Elder Shrooms can be found on a hill to the left and in Mushroom Grotto, as well as near the small mushroom patch which is used to get the Mushroom Hat. The abundance of enemies and loot makes this a popular spot for low-level players to train and grind.
- A Respected Guard: A guard who is guarding the entrance to Nilgarf wants to be respected as a city guard, and requests the player to help him by gathering 25 Elder Beards from Elder Shrooms.
- 1 City Guard Pads
- 839 EXP
- The quest Mushtown Helper, initiated in Mushtown, trails into Mushroom Forest. Part 2 of the quest terminates in Mushroom Forest and Part 3 is started here.
In the Mushroom Forest, there are currently 5 Wooden Chests, one Bluesteel Chest, as well as the elusive Golden Chest which houses the Mushroom Hat item.
- After entering from Mushtown, there's a noticeably large hill to the right with a large tree trunk sloping up it on the visible side. Going over the hill will reveal that the hidden side houses an entrance to the hill, which is hollow and filled with mushrooms. Inside resides the chest.
- A chest can be found on the right side of the map near the edge barrier, in a small divot underneath the end of a large fallen tree trunk that's just past the location of the first chest. The log is aimed upwards to the slope, so just walk up it to find the chest.
- Looking at the Mushroom Grotto entrance, there is a chest directly to its' left sitting against a tree.
- There is a log, laying across a river, in the center of the map. Beneath it, underwater, is the chest.
- A fifth wooden chest is found hiding behind the cart & horse on the right, just before entering the Great Crossroads.
- As soon as entering from Mushtown, look left to see a fallen tree trunk. At the far end of it is a chest.