Victorian fantasy literature emerged during a time of significant cultural and literary debate, particularly due to its association with fairy tales, which were initially met with skepticism in England. This skepticism was rooted in the belief that fantasy indulged irrationality, as discussed by Karen Michalson. However, as the Romantic movement began to value the imagination and innocence of children, fantasy literature gained legitimacy, evolving into a genre that was both entertaining and morally instructive, as noted by Michael C. Kotzin.

Prominent Victorian authors like Charles Dickens, Lewis Carroll, and George MacDonald employed elements of fantasy to critique societal issues like the dehumanizing effects of the Industrial Revolution. These authors used imaginative narratives to question societal norms, with Dickens exploring deeper truths through supernatural elements, as analyzed by Harry Stone. Lewis Carroll’s Alice's Adventures in Wonderland offered a challenge to rationality by presenting an amoral and fantastical world. Despite their clerical ties, Carroll, Kingsley, and MacDonald infused their fantasy works with distinct moral and imaginative approaches. George MacDonald, in particular, was recognized as a foundational figure in the genre for his integration of moral and imaginative elements, a point elaborated upon by Colin N. Manlove.

Additionally, Victorian fantasy literature offered early expressions of feminist themes, often through powerful and magical female characters, a topic explored by Anita Moss. In works like Christina Rossetti's Goblin Market, the genre provided a platform for addressing social and gender issues, predating many adult literary works in its feminist themes. By the end of the Victorian era, fantasy literature had not only served as an educational and entertaining medium but had also contributed to the development of psychological studies and set the stage for modern science fiction.