This article contains minor spoilers.[]
Inside the grotto
The Elderwood Grotto is the cave that connect Deep Elderwood and Elderwood Village.
Gathering[]
The only resourse that can be gathered in the Elderwood Grotto is Cave Mushroom of which there will always be 4 in total.

A map of the grotto
Paw print on the back of the grotto
Entrance to Elderwood Village after chapter 5.
Story[]
The Elderwood Grotto is unlocked after the 4th chapter of the story along with Deep Elderwood.
During the 5th chapter of the story, Leilah will open the wall on the back of the grotto, the player will then be able to use the path behind it to go to Elderwood Village.