In 1927, the mill owner Herbert Schulze from Wünschendorf had the idea of creating a fairytale forest in the idyllic Kamnitzgrund. He commissioned the first two water features - a goldsmith's forge and the fairytale house that tells the story of Little Red Riding Hood. The power of the stream is transmitted with the help of rope belts, water and cogwheels. The games were mainly based on old trades that were based in Wünschendorf. However, the depiction of local fairy tales and legends also delights younger visitors in particular.

The fairytale forest was almost completely destroyed during a flood in 2019 and was reconstructed and reopened in 2020 with the help of donations.

There is a boat landing stage in the immediate vicinity on the Weiße Elster, so you can stop at the fairytale forest during a canoe or boat tour through the Elster valley.

The Märchenwaldbaude restaurant is located at the entrance to the fairytale forest.