Lune Forest is a Site of Special Scientific Interest covering an extensive area of moorland in the Teesdale district of west Durham, England.

Its southern limit is marked by the River Balder, upstream from Balderhead Reservoir, where it shares a boundary with Cotherstone Moor SSSI to the south.

Grains o' th' Beck Meadows and Close House Mine SSSIs are entirely surrounded by Lune Forest, but do not form part of it.

Where steep slopes have inhibited peat formation, the blanket mire gives way to dry heath, in which heather, wavy hair-grass, Deschampsia flexuosa, and bilberry, Vaccinium myrtillus, are the dominant species.

In the northern part of the site, areas where the underlying limestone outcrops at the surface, or has been cut into by small streams, are marked by bands of grassland, typically dominated by mat-grass, Nardus stricta, and with herbs such as heath bedstraw, Galium saxatile, and tormentil, Potentilla erecta.