1. something no longer presents an immediate difficulty or danger, but is not fully resolved either
he/she is doing better, but they are still not out of the woods
If you are 'out of the woods' you are 'out of danger' or out of a difficult or dangerous situation. If someone says 'we are not out of the woods yet' it means that you are not out of danger or difficulty that there is still a risk something could happen or go wrong. This phrase is usually used in the negative and often when referring to someone's precarious health or financial situation.