The game's original title was Grim Eclipse. This was changed to Grimm Eclipse after it was picked up by Rooster Teeth, to be be more in line with the canonical spelling.

The game was originally created as a fan-game over a period of approximately 5 months. A demo version was released on Rooster Teeth's 11th anniversary. Upon its release, Jordan Scott, the game's creator, stated that no further development would be made out of necessity.

One month later, during the RTX 2014 RWBY Panel, Rooster Teeth announced they had picked up the game to be made into an official game.