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The Knight's Forest lies north of Knight's Test and south of Fawn on Serpent Isle. It is rendered treacherous by the fact that it contains the main entrance of the catacombs leading to the goblin camp in the Western Forest, thus plagued by frequent patrols from the settlement.
In Ultima VII Part Two, the Avatar searched the forest to uncover the tunnel entrance in the effort to reclaim the Helm of Courage from the goblins. Later in the quest, the Avatar discovered the House of Wares, wherein Captain Stokes was occupied with his shady dealings.