Though George MacDonald crafted The Princess and the Goblin mainly for children, this enchanting tale continues to captivate readers of all ages. The narrative follows two young characters who mature and develop spiritually as they foil the sinister schemes of goblins. MacDonald's novel features key storytelling elements—a thrilling, well-paced storyline and relatable characters who display both human flaws and strengths.

W. H. Auden, a twentieth-century English poet, described MacDonald's style as "dream realism," praising The Princess and the Goblin as "the only English children's book in the same class as the Alice books." Undeniably, MacDonald used fantasy to convey Christian spiritual themes of faith and love. However, the story's unique blend of fantasy and realism engages the imagination more than the analytical mind, allowing readers to experience its spiritual messages on a profound psychological level. These traits prompted C. S. Lewis to remark that MacDonald's craft is fundamentally the art of myth-making.