The theory of literature is a theoretical framework to study the phenomenon and development of literature. For literary works, literary theory can provide theoretical support and guidance to help readers better understand and appreciate the works. When reading a literary work, readers can often feel the author's emotions and thoughts from the work, but it is difficult to accurately understand the author's intentions. At this time, literary theory can provide a theoretical framework to help readers better understand the works. For example, when reading a novel, the reader could understand the emotions and thoughts that the author wanted to express by analyzing the structure, theme, plot, and so on. At this time, literary theory can provide a theoretical support to help readers better understand the works. Literature theory could also provide guidance for literary creation. For example, when writing a novel, the author could better guide his creation by understanding the theory of theme, plot, structure, and so on. For example, the author could compare and match his own theme and plot with the theme and plot in literary theory to better realize his creative intention. In short, literary theory was of great significance to the understanding and appreciation of literary works. Through understanding literary theory, readers can better understand the works and literary creation can also get better guidance.