Clearwell mines owner Ray Wright is optimistic the Dean's newest tourist attraction will be open this spring.
Ray has taken over 17 acres of land opposite the caves to create a natural woodland wonderland.
Paths have been upgraded so visitors can walk through the old scowles and wooded areas.
It follows the success of nearby Puzzlewood which has seen the Forest's unusual scowles become a firm favourite with visitors and film crews.
The new attraction will harness the legends and mythology of the Forest and tap into a growing interest in the nation's woodlands.
A fairytale castle has been created at the entrance and chainsaw artist Clayton Ryder has made a dragon sculpture.
It also includes three roundhouses from a replica Iron Age village that closed several years ago and a tea room.
Visitors will be able to buy a joint ticket for the iron mines, which have been open for 40 years, and the new scowles attraction.
Mr Wright had originally hoped to open the scowles for the February half term but hit some snags with officialdom.
He said: "There were several issues we had to sort out but we are hoping these will be cleared up by next week.
"It's just a few technical points, so I'm optimistic it will be soon. We have leased the woodland off the landowner and we've made it wheelchair friendly so people can take the buggies round.
"It is right opposite the caves so the idea is that it will be a whole day tourist attraction with people visiting one in the morning and the other in the afternoon.
"People have tried different tourist ideas and they have all gone bankrupt, but we believe there is room for something run in conjunction with the caves."