The Hoosier National Forest spreads across the hills immediately north of Tell City, and the town is one of the best bases for exploring it. The forest covers more than 200,000 acres of oak-hickory hills, sandstone outcrops, and small lakes — the most rugged country in southern Indiana.
The German Ridge Recreation Area, about half an hour northeast of Tell City, has horse and hiking trails through some of the older second-growth woods. Hemlock Cliffs, an hour north toward Marengo, is a short loop hike to sandstone bluffs and seasonal waterfalls — the best half-day walk in the forest. The Forest Service ranger station, on Highway 37 just outside Tell City, has maps and current trail conditions.