Novels are typically fiction. Authors use their creativity to build unique worlds, develop complex characters, and tell engaging stories. Even when a novel is inspired by real - life situations, it still contains fictional elements such as fictionalized dialogue, internal thoughts of characters that can't be known in real life, and often a fictionalized narrative arc to make the story more interesting.
Novels can be both fiction and nonfiction. Fiction novels are a form of creative writing where the author has the freedom to create unique stories. They can be about anything from love in a fictional town to adventures in a magical land. Nonfiction novels, though, are rooted in reality. They might be memoirs, biographies, or accounts of historical events, written in a novel - like style to engage the reader.
Whether a story is fiction or nonfiction can be figured out by considering its source. If it comes from someone's creativity and isn't tied to actual happenings, it's fiction. But if it reports or describes real-life situations, it's nonfiction.