Royal Valley

The Royal Valley is a graveyard to the west of Hyrule Town in The Minish Cap, known for its creepy atmosphere and its dark, foggy climate. By visiting Gentari for the final time at his residence in the Minish Village, he will direct Link to the Royal Valley during his search for the final element needed to revitalize the Four Sword.

Nearly no light naturally enters the valley, therefore a lantern is to be used to make headway. The trees are bleak and decaying, presumably from the lack of light. This game's version of the Lost Woods is located here. To correctly navigate it, you must read the signs along the way. The solution: ↑ ← ← ↑ → ↑

Dampé, the only live human inhabitant, tends to the graveyard. The graveyard area contains the Royal Crypt, a tomb belonging to Gustaf, a former king of Hyrule. It also contains a rather strange spirit, of which looks a lot like the ghosts that attack you on your way there. She is called Gina and lives in a cave underneath the tombstone in the top right corner. She does not attack, but rather she prefers to fuse Kinstones with you. The humorous brotherly ghosts, Spekter and Spookter, can also be found here. Takkuri roost in the trees, waiting to saw upon intruders.

Later, Dampé reveals (most of) a second solution to the Lost Woods, ← ← ← ↑ ↑ ↑ ?, but he can't remember the last turn. Taking this route leads to a treasure chest with 200 Mysterious Shells or 100 Rupees if the player has collected every Figurine in the game.

Another point of interest is an Adventurer's Spring housing the Great Dragonfly Fairy. If Link answers all of her questions correctly, she will reward him with a bigger quiver.

Theory
The music from Gustaf's crypt resembles the dungeon music from the Legend of Zelda. That along with the fact that the Lost Woods from The Minish Cap and The Legend of Zelda both lead to a graveyard, lead many to believe they are the same place.