Right beside Lord McCoy's Palace is the construction site of Lady McCoy's Palace, as she is not content living in the Lord's mansion, instead demanding her own separate house. This new building requires vast quantities of wood, and as such large areas of Kolima Forest were logged. Eventually, this demand for wood leads the lumberjacks of Kolima to take their axes to Tret, the holy tree, an act which mortally wounds him (and by extension the whole forest). This coincides with the eruption of Mt. Aleph, which showers Tret in Psynergy Stones, gemstones which transforms his rage into an uncontrollable beast and gives rise to his ability to curse people by turning them into trees. This halts construction on the mansion indefinitely, much to Lady McCoy's displeasure.
- Nut: Dangling off a tree just outside the palace to its lower left, use Catch to retrieve it.
- Smoke Bomb: Found in the barrel in the top room of the palace's southwest tower portion.
- Elixir: Found in the right barrel among the unlit fireplace where the two women are standing.
- After defeating Tret, McCoy allows you to open one (and only one) of four chests held in the palace's lower level. The following rewards are possible: (There are no known ways to get the chests kept behind the gate where you open a single chest of the four laid out in front of you.)