“People have always spoken of dark and mysterious woods, haunted by unseen beings. The Brecilian Forest is one such forest. They say the Veil is thin here and spirits from the Fade pass over, drifting through the trees and giving them an unnatural and sinister intelligence. It is said that if you feel you are being watched in the Brecilian Forest, you are.” ―Leliana
According the Sarel, a Dalish storyteller, there have been many wars and battles in the Brecilian Forest, many of which were between the elves and Tevinter mages. The death of so many supposedly tore the Veil, which separates the Fade and the real world. Its sinister air, and possessed flora, have led to many (and somewhat true) rumors and stories behind the ancient woods.
Besides stories about werewolves, there is also a small camp here inhabited only by a madman.