PixalGrid is an addon that applies a pixelated effect to the textures of selected objects. Users can reduce texture fidelity by choosing from five preset grid resolutions, ranging from ultra-low 64x64 up to 1024x1024. The tool supports generating the pixel effect using the original image colors or conforming the output to a specific custom palette. Custom color sets can be built manually or imported by reading a list of hex color codes from Blender's text editor.