[3] Development started shortly after the series' second game, Kao the Kangaroo: Round 2, was re-released on Steam in 2019 following a trending #BringKaoBack campaign on social media.

Eventually, the team decided to make the project a reboot, with Tate Multimedia publishing head Kaja Borówko saying that it is a completely different take on the story and on the character.

[19] Hardcore Gamer felt that the level design was "easily the biggest highlight" but similarly cited the game's voice acting, soundtrack, and bugs as its major flaws.

[21] IGN gave the game a 7 out of 10, saying that Kao the Kangaroo doesn't try too hard to be gimmicky, packing a colourful aesthetic and light-hearted humor to carry it through the parts where it feels unoriginal.

[23] Push Square found the game to be a decent 3D platformer with fun glove powers, enjoyably simple design, and nice music and visuals, but thought the presentation was sloppy with glitches, occasionally awkward gameplay, poor writing, and inadequate voice acting.

[26] Pure Xbox found the game to be better than expected, with fun platforming and enjoyable combat, but thought that it felt low-budget on the whole, clunky, and frustrating at times.