"Dead Head Fred" received generally favorable reviews from critics. The game's writing and dialogue were considered the main strengths of the game, with GameSpy's reviewer stating that "In the vast sea of PSP titles, "Dead Head Fred" stands 'head and shoulders' above the rest." IGN said "The tale of revenge in a dark world is twisted unapologetically humorous". Other publications were not as impressed, however, with one reviewer stating "...the overused profanity just makes it feel like it's been designed by teenagers desperately trying to be edgy." The game's supernatural themes elicited comparisons to "The Darkness" and "Grim Fandango". GamesRadar included it in their list of the 100 most overlooked games of its generation. Editor Jason Fanelli felt that PSP games often lacked creativity and that "Dead Head Fred" was the exception.