Purpose: The aim of the study was to assess the influence of historical events on American literature of the 21st century. Materials and Methods: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The terrorist attacks marked a significant turning point, inspiring a wave of literature that grapples with themes of loss, trauma, and the complexities of patriotism. This era saw the rise of novels, memoirs, and poems that explore the personal and collective impact of the event, such as Don DeLillo's "Falling Man" and Jonathan Safran Foer's "Extremely Loud & Incredibly Close." Additionally, the economic downturn of 2008 influenced a body of work that critiques capitalism and explores themes of financial instability and inequality, exemplified by novels like John Lanchester's "Capital" and Jess Walter's "The Financial Lives of the Poets." The rise of social movements, such as Black Lives Matter and #MeToo, has significantly shaped contemporary American literature, prompting a surge in works addressing racial injustice, gender equality, and social activism. Authors like Ta-Nehisi Coates with "Between the World and Me" and Angie Thomas with "The Hate U Give" provide powerful narratives that reflect the ongoing struggle for civil rights and social justice. Implications to Theory, Practice and Policy: Historical materialism, trauma theory and cultural theory may be used to anchor future studies on assessing the influence of historical events on American literature of the 21st century. Encouraging the inclusion of diverse voices and perspectives in literary production and academic studies is essential. Government and private institutions should provide funding and grants specifically aimed at supporting literary works that address significant historical events.