Items: Fire Parts
Pino will greet you at the entrance to the forest, as before. She brings you to look at a stone statue, which Puku says apparently contains some sort of secret. She leaves for the village and leaves you standing in front of the giant statue. Equip the goggles and then you're ready to start exploring.
Begin by drilling the stone columns in the immediate area (as well as an odd chunk of wall that you can't yet harm), then turn your attentions to the statue Pino showed you. Drill it and you'll reveal a vase of some sort, which you can examine. Once you do so, you'll receive the item FIRE PARTS. This is an elemental ability that you can add to your drill to gain the ability to utilize fire attacks. Equip it if you like, then head back to the Monster Village. There, Pino will tell you that Pierre has gone to the human town because he has nothing on which to sit. Remember the couch you picked up from the ruins? You should offer it to him.
To do that, head into Tiese Town and search for Pierre. You'll find him downstairs in your grandfather's house. Talk to him and Parin will give him the couch. Now it's back to the Monster Village, where Pierre is so happy with his couch that it causes the Dark Mist on the world map to pull away even further and reveal two new areas to explore. It's time to head to the next dungeon, in the forest to the west.
NEXT: Radish Woods: Eerie Way