Focusing on the relation between the literary theory and the novels of modern Japanese writer Natsume Sōseki (1867–1916), this article argues that we need to include more ‘non-Western’ theories in the discussions of world literature. Furthermore, it concludes that a world literature contextualization of Sōseki's theory helps explain how his novels critically negotiate the influences from Western literature in Japan. By comparing Sōseki's theoretical and literary writing, this article shows continuity between his Theory of Literature and his novel Kusamakura, arguing that both question Western universality in defining literature. In other words, the comparison stresses Sōseki's continued preoccupation with understanding the transformation of literatures due to global interaction. During the modern period, such transformation was probably nowhere more conspicuous than in Meiji Japan, where not only society but also its literature was rapidly changing.