A wood growing between Mount Mindolluin in Gondor and the beacon-hill of Amon Dín to the north. It formed an easterly outlier of the larger Drúadan Forest, where the remnant of the Drúedain dwelt in the Third Age. Its trees masked the eastern entrance to the ancient and forgotten Stonewain Valley through the White Mountains.

During the War of the Ring, the Drúedain shared their knowledge of the secret Valley with the Rohirrim, and so Théoden and his Men passed through the Grey Wood to the relief of Minas Tirith. After the War, Aragorn returned to the Grey Wood, and it was here that he granted Ghân-buri-Ghân and his people the freedom of the whole Drúadan Forest.