Nintendo released the game in the United States and Europe as a first-party title under license from Hudson Soft.

The game uses side-scrolling and platforming gameplay, while employing role-playing elements with an expansive story and medieval setting.

As the story unfolds, it is revealed that Elves and Dwarves lived in harmony among the World Tree until The Evil One emerged from a fallen meteorite.

The Dwarf King, Grieve, swallowed his magical sword before he was transformed, hiding it in his own body to prevent The Evil One from acquiring it.

Along the way, he may also purchase usable items with gold, equip and use bladed weapons against enemies, wear armor, and cast magic projectiles.

Due to its use of statistics, reliance on story, thematic basis upon medieval fantasy, and provision of interactive NPCs, many observers have classified Faxanadu as a role-playing video game.

Jun Chikuma composed the music for the game and was assisted by Hudson Soft's sound programmer, Toshiaki Takimoto.

Chikuma, working with just the tone generator of the NES which had only three channels, used her background in jazz technique to create melodic movements and express chord progression.

The team gave her full freedom "from general directions to sound-making details", and Jun said that in these good circumstances she was able to work quite freely.

[4] IGN reviewed the game in 2011, after its Wii virtual console release, giving it a better score of 8.5 out of 10 and called it a hidden gem.