The village can be accessed after reaching the end of the Forgotten Forest, which in turn can only be accessed by obtaining 30 Moonstones and giving them to Fran, who will then use them to activate a Teleporter that leads to the forest. After reaching the village, Fran's teleporter will send Gale there directly instead of the beginning of the forest.
Hidden Village contains several buildings that look quite similar to the ones in Panselo, and is inhabited by a tribe of friendly Arcs and Harpies who, unlike the rest of the Arcs and Harpies, are peaceful towards humans. One building contains a Teleporter that will take Gale back to Fran's Lab. All other buildings lead into the same underground structure since in Arc culture, all Arcs (and Harpies) are considered one big family living under one gigantic house. Inside the communal house are several rooms, including an Inn, a shop, a library, and a hot tub. The inn costs only one Rai to use while the shop contains the following items:
- Puki Cheese - 10 - Restores 15 HP.
- Jar of Honey - 10 - Boosts speed and stamina for 2 minutes.
- Bottle of Glowy Wisps - 300 - Restores Gale to full health when her HP reaches 0.
- Blood Ring - 999 - Slowly regenerates Gale's health to 10 HP if it falls below that without dying.
The village was founded by Grasso, a human explorer who trespassed into the Forbidden Lands along with his colleagues over thirty years ago. He befriended the Arcs and Harpies after they saved his group from the Zombots that roamed the Dread Lands. Since then, he has been living and sharing knowledge with them. Many years later during the events of Phoenotopia, Fran and her team manage to repair a teleporter that leads them directly to the village. They make contact with Grasso and the natives, befriending and learning from them. Gale uses the teleporter as well but instead is taken to the beginning of the Forgotten Forest. She fights her way through hostile Arcs and Harpies before finally meeting up with Fran and being welcomed by the village as well.
- Grasso's son Erik can be found in the library teaching a couple Arc and Harpy children. A sidequest is available here where the player can give the Arc child a Golem Hunter Series 2 comic book and one of the Golem Action Figures to help motivate them to learn.
- A Harpy inside the communal building will give Gale a Moonstone in exchange for a Gold Bar.
- The Harpy child at the hot tub will reward Gale 120 Rai for giving him a Small Baton.
- Fran remains in the village for the rest of the game and will continue to collect Moonstones from Gale as well.
- Name: Hidden Forest
- East of: Forgotten Forest
- North of: ????
- Danger Level: None
- Notable NPCs:
- One of the Arcs mentions that they have their own language but use human language as a meeting ground with the Harpies, which implies that the Harpies also have a unique language as well.
- Another Arc also mentions that the forest experiences a winter season.
- A Harpy in the communal building mentions that her sister went to investigate a strange light in the Far Eastern forest and has not returned for a week. The Harpy's description of the light implies that it was a Collector ship.