The article examines the neologisms used in the text of E. Zamyatin ’s novel "We". The aim is to identify their types and determine their functions in the work. The research establishes the total number of word-formation innovations and concludes that potential words, primarily compound adjectives and adverbs, predominate in the inventory of neologisms in the text of the novel "We". Research methods: using word-formation analysis, the types of new formations are established. The functions of neoderivatives in the text are determined and systematised based on structural-semantic and linguostylistic analysis. The study identifies the primary methods of creating neologisms (compounding, compounding-suffixation, blending, suffixation) and highlights several genuine occasionalisms created by Zamyatin. The research demonstrates that the neologisms in the novel are multifunctional. They serve to create figurative characterisations of the personae, as well as the depicted phenomena and objects. Moreover, these neologisms perform the characterological and compression functions in conjunction with the nominative function proper (denote the realities of the Unified State). They contribute to the development of the recurring motifs in the work and largely determine its leitmotif structure. The paper emphasises that the nature of the neologisms in the novel "We" reflects the characteristics of E. Zamyatin ’s individual style as a whole and is associated with the aesthetic principles of neorealism the writer substantiated (creation of integral images, conveyance of visual impressions, and others).