Picogram first began developing Garden Story in March 2018 and signed with publisher Rose CIty Games in June 2019, allowing them to begin full-time work on the game. While Picogram previously participated in game jams to create titles like P.E. Noire and goodbye, doggy, this is their first full commercial title. The Autumn Town Demo made its debut in November 2019 on Steam, following up with showcases at events like PAX East, The Escapist E3 Indie Showcase, and the Wholesome Games Direct. In June 2020, the team announced their 2021 release window in conjunction with their new partner, Kowloon Nights.

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