Metafiction is fiction that reminds the reader of being inside a fictional universe. Cervantes does this by constantly juxtaposing the gritty reality of life in Spain against Don Quixote 's desire to live just like one of the fictional knights he has read about in medieval romances. Fiction defines Quixote's...
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perception of reality.
Because of the reality that inevitably confronts Don Quixote as he tries to realize his fantasy of becoming a knight, Don Quixote has been called the first novel. It doesn't simply transport the reader to a dream world of fantastic adventure and magical happenings as a knightly romance does. It constantly puts Quixote into the context of the real world in all of its unpleasantness—and it constantly reminds the reader that the mental world Quixote lives in is different from the real world. Don Quixote wants to change the world into a more ideal place but is constantly thwarted. He is considered mad for his attempts to realize his dreams. Cervantes pioneers a new form of literature from that metafictional contrast between fictional dream and harsh reality.
Prose literature changed after Don Quixote as writers realized they could often entertain readers in a more satisfying way by placing characters in real world situations than by creating elaborate fantasy worlds. By setting the novel form against the romance, Cervantes placed the novel on the path to realism.