The Kokiri Forest is situated in the the eastern region of Hyrule, next to Zora's River. The Forest is home to one of Hyrule's races, the Kokiri, as well as the guardian forest spirit, the Great Deku Tree. The Forest itself is the most elusive place in Hyrule, featuring the Lost Woods, a forest maze, and the Sacred Forest Meadow, where the Forest Temple resides. The Forest is so expansive that it connects to many places in Hyrule, such as Zora's River and Goron City.

Like the other towns, Kokiri Forest contains a variety of different attractions. The Kokiri Shop features a range of forest-derived weapons, including the Deku Shield. The Forest Training Center provides basic training for the Kokiri, as well as a place to practice techniques. To learn about various things, the House of the Know-It-All Brothers is the place to go.

The Lost Woods holds its own ensemble of offerings. If one is able to score three perfect 100s in a row at the Target Challenge, a Deku Sprout will give a prize. A couple of Skull Kids are willing to play a follow-the-leader ocarina game as well.

Skull Kids are a creature found primarily in the Lost Woods. They are the warped result of outsiders who have wandered into the fairy woods. Afraid of adults, they appear to get along best with children or the Kokiri. In fact, if a grownup gets to close, the Skull Kid will disappear, or even worse, start to attack. It is unknown what powers they possess but, like the Kokiri, they seem to have a close connection to the woods.

Another creature found in the Lost Woods is the Deku Scrub. Although most Deku Scrubs are neutral, some follow Ganon and will attack. The Deku Scrubs in the Lost Woods are primarily good-hearted, and many are willing to sell their stocks to help Link on his adventure.

Beyond the Lost Woods is the Sacred Forest Meadow, the secret haven of Saria and virtually the front yard of the Forest Temple. The Meadow, being in close vicinity to the Temple, is the best place to communicate with the forest spirits. Being so far away from civilization, it's also the perfect escape for someone who needs time away to think and recuperate. It's Saria's favourite place to go when she needs time alone.

The Kokiri Forest is a very important and mystical place. Although the Kokiri have become accustomed to it, visitors would be amazed to see the forest spirits floating carelessly about and the sheer amount of fairies around. It is also the source of life, and maintains the order of the world. The Deku Tree has also implied that it acts as a barrier, physically surrounding Hyrule and preventing its access from outsiders.

Even those in Hyrule are forbidden from entering the forest. Many Hylians don't even believe in the existence of the Kokiri, and regard the forest as a fantastical, dangerous place. This, for the most part, only helps to protect the forest and keep the Kokiri safe from harm.