The forest is the 2nd level in the game in which you start by going through the hall's, but eventually reach a door that leads to a huge room with a chandelier, roots covering up the entire room, and a wood piece in the middle of the room that's attached to all 3 roots.

You start by getting a puzzle piece under a painting, the child then walk's to the wood piece and removes the piece of cloth to reveal a puzzle. Once he puts in the puzzle piece he found in the correct spot, the roots to the left will dissolve, allowing him to walk through. He then come towards a painting, that starts to change from pictures when he gets near or far. The painting shows a woman strangely reaching her hand down near the river on a bridge in the wood's, almost as if she dropped something in the water, and is trying to retrieve it. It might be possibility be a wine glass.

Once he finds the next puzzle piece and goes back to the painting, they put in the piece to the right, where the roots on the right dissolve. The painting there shows a woman reaching into a well and drinking from it. She then walks towards the water looking much different than usual. As her hair is now black and frizzed up instead of in a brown bun.

This level introduces a new monster that may represent the lady in the painting. She is called the lady at the well or might be forest lady. She is hostile and represents the mother in her drunken stage of drinking. She will chase the toddler around, in which he will need to hide under a table or in a barrel until she goes away.

The puzzle piece in this stage is found after twisting the crank for the well along with an orange triangle key the player uses to unlock the nearby gate with a triangle lock.

After he comes back by going through a window and goes back to the room, they put in the final puzzle piece, revealing a little girl possibly showing her mother a book, whilst the mother is sitting at the river. The final painting shows the same little girl reading a book with her mother in a library, but the mother starts to disappear, and the house turns into a forest, the final picture shows the girl sitting in the forest reading the book all alone.

The final stage in the level is a maze-like house with bookshelves everywhere. Once he passes a small piece of wood across the small river, the he will see a room that leads to the memory, but he has to be quick, as the monster from the second stage returns in the location! The memory in this stage is the book the Teddy reads to the child.

The book may be where the toddler got the idea for the second level as it tells of "Five thirsty animals" digging a well for water before they die of thirst which maybe be a hand written book might be from the mother for her taste of wine, which may be a reference to death of starvation.