''
Halliwell's Film Guide'' deemed it an "Uninteresting animated feature, with a dull fairy-tale plot dully executed." Rita Kempley of the
Washington Post wrote that the movie set a standard as far beneath that of
Aladdin. In a desperate attempt to counter its bad reviews, Hemdale asked several movie critics to view the film with their children and asked those children for their comments on the film; these were subsequently included in its newspaper promotion. Mentioned in the advertisements were
Michael Medved's daughter, Sarah, and Bob Campbell's four-year-old daughter ("It gets 91 stars!"). The idea came from Hemdale executives who thought
animated films from the Disney company were preferred over those from other studios.
The Princess and the Goblin received a Seal of Approval from the
Dove Foundation, and the
Film Advisory Board's Award of Excellence. It also won the Best Children's Film Award at the Fort Lauderdale International Film Festival. == Home media ==