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Hallucinatory realism is a term used in the translated version of the motivation for Mo Yan's Nobel Prize in Literature. In the original Swedish version, the term used is instead "hallucinatory sharpness" ("hallucinatorisk skärpa").

In hallucinatory realism are reality and subjectivity indistinguishable, and, according to Joy Press, hallucinatory realism makes imaginary universes feel concrete and believable.

The term hallucinatory realism has previously been used by different critics to describe works by the writers Peter Weiss, Tomi Ungerer, Pasolini's film "The Gospel According to St Matthew" and to describe "My Life as a Fake" of Peter Carey, and a novel of Kevin Baker.