One village located to the far north of the world of “Final Fantasy VII” is Bone Village. Though not secret at all and essentially mandatory to visit towards the latter part of disk 1, the Bone Village does offer many hidden rewards and potential items that could have been missed earlier on.
While Bone Village is mandatory to visit after events at the Temple of the Ancients, the village can be visited at any time after the acquisition of the Tiny Bronco. The village's path to the rest of the continent is blocked by the Sleeping Forest, a magical forest that requires special actions to be taken in order to advance.
There will be almost nothing to do if visiting Bone Village before progressing the story to the point that it is required to go to this town, and the player cannot pass through the Sleeping Forest at the current time. However, the armor shop sells double Materia growth equipment for the party, which would give the player a nice leg up on the competition to obtain such equipment rather early on.
After events at the Temple of the Ancients in disk 1, the trail leads the party to the Sleeping Forest, a road block that stands between Cloud and Aerith. At this point in the story, the excavating mini-game can now be played in the Bone Village, and while it must be played at least once to advance the story, as the player must excavate in order to obtain a Lunar Harp in order to awaken the forest, the mini-game can be done many times over for a plethora of extremely rare and helpful rewards.