The Meiji period marks the re-opening of Japan to the West, ending over two centuries of period of national seclusion, and a period of rapid industrialization. The introduction of European literature brought free verse into the poetic repertoire. It became widely used for longer works embodying new intellectual themes. Young Japanese prose writers and dramatists struggled with a whole galaxy of new ideas and artistic schools, but novelists were the first to assimilate some of these concepts successfully.
Natsume Sōseki's (1867–1916) humorous novel Wagahai wa neko de aru(I Am a Cat, 1905) employed a cat as the narrator, and he also wrote the famous novels Botchan (1906) and Kokoro(1914). Natsume, Mori Ōgai, and Shiga Naoya who was called "god of the novel" as the most prominent "I novel" writer, were instrumental in adopting and adapting Western literary conventions and techniques. Ryūnosuke Akutagawais known especially for his historical short stories. Ozaki Kōyō, Kyōka Izumi, and Ichiyo Higuchi represent a strain of writers whose style hearkens back to early-Modern Japanese literature.
In the early Meiji period (1868–1880s), Fukuzawa Yukichi authored Enlightenment literature, while pre-modern popular books depicted the quickly changing country. Then Realismwas brought in by Tsubouchi Shōyō and Futabatei Shimei in the mid-Meiji (late 1880s–early 1890s) while the Classicism of Ozaki Kōyō, Yamada Bimyo and Kōda Rohan gained popularity. Ichiyō Higuchi, a rare female writer in this era, wrote short stories on powerless women of this age in a simple style in between literary and colloquial. Kyōka Izumi, a favored disciple of Ozaki, pursued a flowing and elegant style and wrote early novels such as The Operating Room (1895) in literary style and later ones including The Holy Man of Mount Koya (1900) in colloquial.
Romanticism was brought in by Mori Ōgai with his anthology of translated poems (1889) and carried to its height by Tōson Shimazaki etc. and magazines Myōjō and Bungaku-kai in early 1900s. Mori also wrote some modern novels including The Dancing Girl (1890), The Wild Geese (1911), then later wrote historical novels. Natsume Sōseki, who is often compared with Mori Ōgai, wrote I Am a Cat (1905) with humor and satire, then depicted fresh and pure youth in Botchan (1906) and Sanshirô (1908). He eventually pursued transcendence of human emotions and egoism in his later works including Kokoro (1914) his last and unfinished novel Light and darkness(1916).
Shimazaki shifted from Romanticism to Naturalism which was established with his The Broken Commandment (1906) and Katai Tayama's Futon (1907). Naturalism hatched "I Novel" (Watakushi-shôsetu) that describes about the authors themselves and depicts their own mental states. Neo-romanticism came out of anti-naturalism and was led by Kafū Nagai, Jun'ichirō Tanizaki, Kōtarō Takamura, Hakushū Kitahara and so on in the early 1910s. Saneatsu Mushanokōji, Naoya Shiga and others founded a magazine Shirakaba in 1910. They shared a common characteristic, Humanism. Shiga's style was autobiographical and depicted states of his mind and sometimes classified as "I Novel" in this sense. Ryūnosuke Akutagawa, who was highly praised by Soseki, wrote short stories including Rashōmon (1915) with an intellectual and analytic attitude, and represented Neo-realism in the mid-1910s.
During the 1920s and early 1930s the proletarian literary movement, comprising such writers as Takiji Kobayashi, Denji Kuroshima, Yuriko Miyamoto, and Ineko Sata produced a politically radical literature depicting the harsh lives of workers, peasants, women, and other downtrodden members of society, and their struggles for change.
War-time Japan saw the début of several authors best known for the beauty of their language and their tales of love and sensuality, notably Jun'ichirō Tanizaki and Japan's first winner of the Nobel Prize for Literature, Yasunari Kawabata, a master of psychological fiction. Ashihei Hino wrote lyrical bestsellers glorifying the war, while Tatsuzō Ishikawa attempted to publish a disturbingly realistic account of the advance on Nanjing. Writers who opposed the war include Denji Kuroshima, Mitsuharu Kaneko, Hideo Oguma, and Jun Ishikawa.