Analytic philosophy of literature is in a state of flux. On the one hand, there is a growing interest in interdisciplinary study and dialogue with other disciplines that can be seen in the study of narratives, for instance. On the other hand, there is a—mostly implicit—disagreement about the very aims and methods of the analytic approach. This essay explores the aims and methods, and the problems and prospects, of analytic philosophy of literature. After discussing its history and characteristics, it examines certain alleged weaknesses of the analytic approach, such as its neglect of the empirical and historical. Finally, it considers the prospects of the analytic enterprise and suggests how it can best contribute to our understanding of literature.