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Lloyd Irving and Genis Sage first enter the Iselia Forest on their way to Lloyd's home. Genis asks to tag along to meet one of his friends. Slighly confused, Lloyd agrees. Upon entering, Noishe becomes nervous and flees. The boys come to a crossroads, in which Genis says he will be taking his leave. However, Lloyd notices that Genis is heading toward the human ranch deep in the forest so he insists on joining him. There, they meet Genis's friend Marble, an elderly woman being held within the ranch. Lloyd notices her Exsphere lacks a Key Crest and explains the danger of it. After some persuasion from Genis, Lloyd agrees to make Marble the Key Crest and she thanks him, but the Desian guards soon notice her and being shouting. In a desperate attempt to save Marble, Lloyd and Genis execute a plan of attacking the guards, then fleeing. Two guards, however, see Lloyd's face so he kills them. Afterward, he jumps down the cliff to the entrance of the forest where Genis awaits him and apologizes for causing the guards to see his face. Lloyd is oblivious to the seriousness of the matter and forgives him. Genis then returns home to Iselia, and Lloyd continues to Dirk's House.
Iselia Forest is where the Sword Dancer can be fought for the final time in the game if all necessary circumstances are met.