Link finds a Mushroom in Mysterious Woods
The Mysterious Woods (also known as Mysterious Forest) is a forest from Link's Awakening. It is one of the first places Link visits in Link's Awakening. In the woods, Link can find a Mushroom, (like the one shown above) which can be exchanged for Magic Powder later in the game. Also found here are the Tail Key which opens the door to Tail Cave.
Notable residents of the Mysterious Woods include an imp underground that curses Link with the ability to hold more magic, and a Great Fairy.