Cool game! I liked that you get to choose different actions. I enjoyed talking to/observing different characters to make progress. I was able to get the sword but then died trying to use it on the dragon. Such is the life of an adventurer, I guess. The art is simple but does its job well. The character animation was pretty smooth. Some music would have been nice.
There are some usability issues that can be improved on like the inventory items don't let you walk. Also, near the lake I couldn't see all the inventory items because of the tree and had to sort of guess where the gem was.
Overall, I think this has a lot of potential if you choose to keep working on it. Good work!