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From Diablo Wiki
→Quest Rewards
Multiplayer quests in Diablo award just a random magical item which is dropped when the quest monster: [[The Butcher]], the [[Skeleton King]], and [[Lazarus]]. Diablo must be killed to complete the final quest in the game, but he does not drop a magical item as a reward. (Diablo drops like any random monster, and will occasionally drop an item or gold. Despite the game freezing at that point, his drop can be picked up if you have a Telekinesis spell already cast and ready to click.)
Multiplayer quests added in Hellfire include item rewards from [[The Hork Demon]] (a magical amulet), and [[Na-Krul]] (A book of [[D1 SpellD1_Spellbooks#Apocalypse|Apocalypse]] and a magical: staff, great sword, and long war bow, all with random properties). These are dropped directly by the monsters themselves and belong to whichever player is quicker on the click.
Single player quests in Diablo and Hellfire add more interesting rewards, usually in the form of unique items. These may be found in the dungeons as part of the quests, dropped by the quest monsters themselves, or delivered to you by NPCs in town. All of these unique items are found only in the single player game, and can not be legitimately obtained in multiplayer mode. See the [[D1 Quest Items|Quest Items page]] for a full listing.