The forest hermit magician is an old acquaintance of Lucain who resides in the Lost Woods. He and Lucain had a falling out, so you are sent to find him to inquire about the Ancient Dragon, the Illusionary Lands and how to prevent its seal from breaking. Once you unlock Path B, he will tell you about a fearsome creature that has been killing those who pass through the Woods and has killed all who tried to hunt it down which you will later discover to be the Killer Rabbit.
- The Forest Hermit is a blatant reference to Tim the Enchanter from the 1975 film Monty Python and the Holy Grail who leads Arthur and his knights to the lair of the Killer Rabbit.
- If you click on his face the message will be "He refuses to open up about his relationship with Lucain." Clicking on his clothes gives "Even his clothes are meant to ward off conversation." Clicking on his burning staff results in "Perhaps that's a clue how to leave the forest."