Abstract: At present,the research and theoretical construction of literary interpretation theory in China are still in the initial stage,and some theoretical concepts still need to be further explored.The first issue is the uniqueness and significance of literary interpretation.Traditional hermeneutics does not strictly distinguish literary genres from other genres.Contemporary literary interpretation is based on the characteristics of literary non referential and fictional nature,and points towards imaginative interpretation.It emphasizes the uncertainty and ambiguity of the meaning of literary works,as well as the spiritual values of emotional and aesthetic experience,reflecting the unique significance of literary interpretation.The second issue is the relationship between literary interpretation and literary criticism.The two are closely related yet clearly different.Literary interpretation mainly involves interpreting the meaning of a work and sharing it with others,achieving the value of communication and sharing.Literary criticism requires further objective and rational evaluation and analysis of works,involving requirements such as understanding people and society,praising excellence and belittling inferiority.Therefore,distinguishing and understanding the characteristics and functions of the two is beneficial for deepening research.The third issue is the relationship between literary ontology interpretation and applied interpretation.The former is an “inward” interpretation,pointing to the interpretation of literary and aesthetic significance and value;the latter is an “outward oriented” interpretation,pointing to other applied interpretation purposes,with open and interdisciplinary interpretation characteristics,which is conducive to extending and realizing the meaning and value of literary works.