"The Magic Candle" was reviewed in 1989 in "Dragon" #148 by Hartley, Patricia, and Kirk Lesser in "The Role of Computers" column. The reviewers gave the game 3 out of 5 stars. Scorpia of "Computer Gaming World" in 1989 gave the game a very positive review, noting that killed monsters tend to stay dead, a welcome change from the "endless wave" of other CRPGs. Criticisms included the relatively slow combat and the inability to quickly find people or shops in town. The magazine later recognized it as 1989's Role-Playing Game of the Year, describing it as "extensive, well-written, and balanced". In 1993 Scorpia approved of the "superior nonviolent ending" and stated that the 1989 award was well-deserved.