Mechanics of the Lost Woods
The Lost Woods must be navigated in a specific order to reach the graveyard. Failing to follow even one step correctly can force you to restart the puzzle, essentially making you wander endlessly until you deplete your heart containers or give up out of frustration. If you find yourself lost in the Lost Woods, head east to restart the puzzle from the beginning. The Lost Woods only have an eastern and western exit.
Navigating the Lost Woods
You must traverse four separate screens to exit the Lost Woods correctly. Upon entering the Lost Woods, head North. You can choose to fight away any enemies that approach you, or quickly maneuver away from them to avoid their attacks. After heading north, take a turn to the west until you enter a new screen. Head south until hitting a new screen, then finally exit the Lost Woods by heading to the west.
Locating the Master Sword
Once you've reached the graveyard, locating the Master Sword should be your first directive. You can push gravestones in the graveyard to reveal hidden tunnels, items and enemies. Navigate to the middle row and then locate the second gravestone from the right. Push it to enter a cave where an old man will display the Master Sword for you. You can only take the Master Sword from the cave if you have obtained at least twelve heart containers.
The Second Quest
After completing the Legend of Zelda, you will be given the opportunity to play the game over. During your second play-though, dubbed by fans as the "Second Quest," the enemies will be harder and items and dungeons are hidden in new locations. During the second quest, the location of the Lost Woods and graveyard are the same, but you will find the Master Sword under the gravestone furthest to the left.