This article argues that for the past ten or fifteen years literary semiotics has been in a new phase of development. The adoption of Charles Peirce's pragmatic semiotics as the frame theory for research on literary semiosis has opened up new questions and topics for analysis and facilitated a return to essential concerns neglected by the earlier approaches. Three lines of interrogation emerge as central from work done to date: analysis of language-world relationship, imaginative reading, and interpretation as dialogic production of shared knowledge. The article reviews the main discussions on these topics, also relating the pragmatic approach to competing paradigms in literary studies. Semiotica