The Sleeping Forest is a cold boreal forest in the Icicle Area in Final Fantasy VII, located directly between the Bone Village and the Corel Valley. If the player does not dig up the Lunar Harp before entering the Forest, the first screen repeats infinitely. The entrance to the Sleeping Forest from Bone Village may have been planned to be closed at one point, as dummied dialogue suggests the way in would have opened for Aeris with "a loud noise".
The forest has no enemy encounters, not even on the world map.
The Sleeping Forest is first seen in a dream Cloud has after he collapses at the Temple of the Ancients. Aeris talks to Cloud through the dream. Cloud decides to follow her to the Forgotten Capital and must pass through the forest to get there.
In Final Fantasy VII: Advent Children, Cloud passes through the Sleeping Forest en route to the Forgotten Capital where he is visited by Aerith's spirit in a similar manner to how she visited him in his dream in Final Fantasy VII. Shortly after Cloud is ambushed by Kadaj's group, as well as the children under his control. In the ensuing chaos, Cloud takes on Loz, Yazoo, and Kadaj and is nearly defeated before being saved at the last minute by Vincent Valentine.
Kujata Materia runs along the ground and must be caught before it leaves the screen. If the player's Materia inventory is full when picking it up, the Kujata Materia will be lost forever. Usually if a player attempts to pick up a Materia when the inventory is full, the game will notify the player and ask them to remove Materia first. Due to poor programming this never happens with Kujata; the player merely receives the message that they have acquired the Materia, but upon entering the Materia inventory the Materia is not there, as there was no room to place it in.
"In Search of the Man in Black" plays inside of the Sleeping Forest.