PICO-8 is a virtual machine and game engine created by Lexaloffle Games. It is a fantasy video game console that mimics the limited audio-visual capabilities of 8-bit systems from the 1980s to encourage creativity and ingenuity in producing games without being overwhelmed with the many possibilities of modern tools and machines. Such limitations also give PICO-8 games a particular look and feel.

Coding on the PICO-8 is accomplished through a Lua-based environment, in which users can create music, sound effects, sprites, maps, and games.

Users are able to export their games as HTML5 web games or upload their creations to Lexaloffle's official BBS where other users are able to play the games in a web browser, and view the source code. PICO-8 games can also be exported as executable programs, which will run on Windows, macOS, or Linux.

Its successor is Picotron, another virtual machine dubbed as a fantasy workstation with less constraints.

Notable games released for the system include the original version of Celeste, which was created in four days as a part of a game jam.

The PICO-8 program integrates a Lua code editor, sprite and map creation tools, and an audio sound effect and music editor. The program can load games saved locally on a computer, in the form of text or as specially encoded PNG images. The interface also supports a splore mode, where games uploaded to the BBS can be previewed and then played in the PICO-8 program.

PICO-8 games, as well as the program's interface itself, are limited to a 128 × 128 pixel, 16-color display, and a 4-channel audio output.

As of v0.1.11, users may export Pico-8 cartridges as stand-alone executables for Windows, Linux (64 bit), Mac, and Raspberry Pi.