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Development
The game took eight months to develop by Mikael Tillander, a newcomer to the Commodore 64 development scene. Tillander worked on the design and programming while Håkon Repstad provided help with the game's graphics. In an interview Tillander stated “I drank several cans of soda per day during that time,” adding “The money I got for the game don't cover the cost of the first can.” Tillander noted that development on newer computer formats is made more difficult by the need for larger teams of developers.

Reception
Knight 'n' Grail received praise from reviewers. 1up.com's Jeremy Parish stated "what I've played has proven to be really quite good."