In "Monty Python and the Holy Grail," the coconut gag serves as a humorous device that highlights the absurdity of perceived authenticity in filmmaking. The scene cleverly illustrates the incongruity of knights galloping through the countryside by using two coconut halves to mimic the sound of horse hooves. This gag draws attention to the artificiality of the film's production while simultaneously parodying the epic quests typical of the medieval genre. The dialogue around the gag further emphasizes the ridiculousness of the characters' serious discussions juxtaposed against their comically simplistic mode of transportation. By focusing on such a trivial detail, Monty Python invites viewers to question the conventions of storytelling and the lengths to which creators go to maintain the illusion of realism, all while delivering a hearty dose of nonsensical humor that has become iconic in comedy.