Children have been wandering through the woods at Wintles hillside finding fairy houses hidden amongst the trees.
The trail was dreamt up by Councillor Glynn Roberts, the latest in a series of trails for the town.
Artists Sarah Gillard and Henry Gabriel used their skills to create the features and special Trail Packs can be picked up from the information centre at the Town Hall for £1.50.
Councillor Roberts said funding from the town council, the Bishop's Castle Tourism Association and Connexus was used the develop the trail. He said the primary school had also been involved.
"The aim is to promote exercise, provide adventure and an appreciation of the natural environemt," he said.
"The trail involves learning map interpretation, route finding, decision making and observation skills."
Bishop's Castle has a number of trails aimed at adults including the Town Trail, Heritage Trail, Real Ale Trail and Old Pubs Trail.
This is the first that will be aimed specifically at children and families, Councillor Roberts said.
He thanked Wintles Management Limited for allowing the trail on public footpaths and permissive routes.