Literary fiction is a term principally used for certain fictional works that are claimed to hold literary merit.

Despite the fact that all genres have works that are well written, those works are generally not considered literary fiction. To be considered literary, a work usually must be "critically acclaimed" and "serious". In practice, works of literary fiction often are "complex, literate, multilayered novels that wrestle with universal dilemmas".

Literary fiction (a.k.a. mainstream fiction) is usually contrasted with paraliterary fiction (e.g., popular, commercial, or genre fiction). This contrast between these two subsets of fiction is highly controversial amongst critics and scholars who study literature.