The fairy tale will be made available for free on Daydream, Google's mobile virtual reality product.
Daydream is a mobile headset which covers the eyes of the user and immerses them in the film they are watching.
The corporation has released a trailer for the experimental project ahead of its release next week.
The BBC said the project is part of the corporation's drive to explore emerging technology and new storytelling mediums for future audiences.
Read More: Google's hot take on affordable VR
The storyline of The Turning Forest sees a young child staring into the eyes of a fantastical creature before they embark on a journey together into a new realm of "folkish dimension and boundless imagination", the BBC said.
The film also has its own "spatial" soundtrack, which is intended to be heard via headphones, further immersing the viewer in the virtual reality experience.
The Turning Forest debuted at the 2016 Tribeca Film Festival, and was originally created for another VR product - the Oculus Rift.
The BBC said the film has now been enhanced to further improve the sound design and introduce new controller interactions.
Zillah Watson, executive producer of BBC R&D, said: "The Turning Forest is unique in that it's been designed from the sound up, using state-of-the-art audio to help transport people to a magical world.
"It takes advantage of decades of research and experience from our own team, partners and universities to create a beautiful soundscape that we hope people will love."
The Turning Forest has been produced by the BBC's Research & Development team in collaboration with virtual reality production studio VRTOV.
Follow us on Twitter @BBCNewsEnts, on Instagram, or if you have a story suggestion email entertainment.news@bbc.co.uk.

The incident happened at a Melbourne police station late on Tuesday.
The 18-year-old, who had been asked to attend an interview, stabbed two counter-terrorism officers several times. One of them then shot him.
Police would not confirm reports he made threats against PM Tony Abbott.
Media reports also said he had been seen with a flag of Islamic State (IS, also known as Isil), the radical Islamist group that controls areas of Iraq and Syria.
"It is true to say there was a flag involved, whether it was Isil or not is not absolutely clear to me but there are some concerns about that issue," Commissioner Ken Lay of Victoria Police said.
The man, who was named in parliament as Abdul Numan Haider, is of Afghan origin and had been associated with al-Furqan, a radical group, local reports said.
Mr Lay said he stabbed the officers as they greeted him.
"One's extended his hand to shake his hand and the response has been he's been stabbed in the arm," he said.
"The attacker's then turned on the second police member and stabbed him three or four times in the body and in the head.
"The first wounded member has then shot and killed the young man."
Both officers required surgery, but were in a stable condition, police said.
The 18-year-old was described by Justice Minister Michael Keenan as "a known terror suspect who was a person of interest to law enforcement and intelligence agencies".
Police said the meeting at the Endeavour Hills police station was prompted by an escalation of activity that had led to concern.
Mr Abbott, who is overseas, said the incident showed "that there are people in our community who are capable of very extreme acts".
The incident came days after police conducted major anti-terror raids in Sydney and Brisbane in response to an alleged plot by IS followers to publicly behead a randomly-selected Australian.
One man has been charged with serious terrorism offences following that operation.
In recent months, Australian officials have been expressing growing concern over the the impact of Australians fighting with Islamist groups in the Middle East on domestic security.
They are concerned both about returnees and those who sympathise with the causes they advocate.
In response, the government is introducing new legislation to prevent Australians travelling to conflict zones to join militant groups, and to penalise those who do.
The BBC has confirmed it will launch a new virtual reality film, The Turning Forest, next week.
[NEXT_CONCEPT]
A teenager shot dead after he stabbed two police officers was a "known terror suspect" whose passport had been cancelled on security grounds, Australian officials say.