The Bunny Graveyard was created and developed by Kenneth Alvarez, also known as "ElPichon". Kenneth has spent more than seven years learning how to use GameMaker, make music, expand his art skills, all to release his first game.

Development of The Bunny Graveyard officially began in 2020, the game was initially meant to be a 30-minute-long Halloween game that they would release for free, this is when Jorge Ramirez, the writer for the game, got involved with the project. During development, Kenneth and Jorge came up with hundreds of ideas for the game, to the point where it now became a massive title with a lot of potential.

To ensure they would release the best product possible, Pichon Games decided to release the game episodically. The first game released in September 22nd, 2023 for PC/Windows with a lot of praise for its amount of content and length, receiving an Overwhelmingly Positive score on Steam. In July of 2024, it was revealed that the game would continue in sequels.