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.
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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.
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The BBC has confirmed it will launch a new virtual reality film, The Turning Forest, next week.