I decided to add/try-out a day/night cycle in the game. It only affects the forest and town since the caves are indoors. The day/night state is also applied to the combat and is updated while you fight.
Below are a couple of screen shots of two versions of combat at night that I first started off with. The first one fades only the background leaving the characters at full light, while the second one darken both.
Here are the two for comparison:
After some consideration and feedback, I decided to try a mix between the two. What I’ve ended up with is darkening the background with a slightly higher reduction than the characters, but the characters are still darkened themselves a bit. This seems to be the best solution so far.