Beagle published a coda story to The Last Unicorn titled "Two Hearts" in the October/November 2005 issue of Fantasy and Science Fiction magazine. Though beginning with a new narrator, four main characters from the original story appear again. The story is also included in the short story anthology The Line Between, published in July 2006, as well as in the deluxe edition of The Last Unicorn that was published in 2007.[18] Two Hearts won the annual Hugo and Nebula Awards as the year's best novelette.[19]
At the end of December 2008, Peter S. Beagle announced that he had written several new stories which were directly or indirectly linked to The Last Unicorn. These included three unicorn stories ("The Story of Kao Yu" about a Chinese ki-lin, "My Son Heydari and the Karkadann", and "Olfert Dapper's Day", a fictional account of the Dutch physician and writer's encounter with a unicorn in the Maine woods) and two Schmendrick stories ("The Green-Eyed Boy" and "Schmendrick Alone"). In 2017, these stories were gathered in a short story collection titled The Overneath. "The Green-Eyed Boy", which earlier appeared in the September/October 2016 issue of Fantasy and Science Fiction magazine, describes the early days of Schmendrick's apprenticeship under Nikos. A third completed Schmendrick story was also mentioned by Beagle in December 2008.
The short story collection Sleight of Hand from 2011 contains a Schmendrick story titled "The Woman Who Married the Man in the Moon", and "Oakland Dragon Blues", a story concerning the fate of the dragon from Beagle's abandoned early version of The Last Unicorn (circa 1962).
2017 saw the publication of a novella titled In Calabria, in which the appearance of a unicorn on a quiet Italian farm leads to upheaval, violence and death.
In 2023, the book The Way Home was released, consisting of two novellas – 2005's "Two Hearts" and the newly written sequel "Sooz".[20]
