While traversing in the sections with an overhead view, the player is able to talk with residential ghouls and, if outside a town, is susceptible to random battle encounters.

Throughout the game, the player gains various items including passive ones that increase Firebrand's abilities outright.

Another projectile temporarily covers sharp vertical surfaces allowing Firebrand to reach higher locations.

The team decided to develop for the Game Boy, so as not to overshadow the Ghosts 'n Goblins series in arcades and on home consoles.

[8] From contemporary reviews, GamePro magazine predicted Gargoyle's Quest to be a system seller for the Game Boy, and called it an instant hit, as well as "original."

They ended their review praising the game for its diversity of play and locales, and for its "detailed graphics and great music".

[4] Brett Alan Weiss of Allgame gave the game four out of five stars, concluding that "Nice graphics and sounds, solid controls, and several new abilities (including flying and climbing) round out this ghoulishly entertaining, though undeniably challenging experience.