Despite what is implied in the film, Hercules didn't actually give up his immortality, he's simply shown as choosing to remain with Megara. In mythology Hercules was a gatekeeper of Olympus, the divine protector of mankind, as well as being the God of strength, heroes, sports, athletes, health, agriculture, fertility, trade, and oracles. His role as a protector of mankind helps to explain why he chose to remain on earth. Not only that, but several gods in mythology were known to live among mortals, so Disney was making a subtle nod to mythology by making Hercules remain on Earth.

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