Realism is the most important method of artistic reflection of reality in Ossetian literature. A truthful presentation of typical characters in typical circumstances, heroes and reality is the creative essence of realism, and the artistic image is its most important tool. In the Ossetian literature, realism is not a borrowed phenomenon, but a completely original one, rooted in the folklore and mythological principles of generalization and typification of diverse life facts. And this is natural. After all, it was formed on the basis of ethno-national aesthetic experience in the process of historical formation of the artistic consciousness of the nation. Of course, at the same time, realism in the Ossetian literature at different stages of its history was greatly influenced by realism in other literatures, in particular in Russian classical and Russian Soviet. But its foundations are ethno-national folklore and mythological principles of reflecting reality. The fact is that the energy of folklore and mythological imagery has always nourished it and helped to create its most important structural-substantive and formal-aesthetic components. Thus, literature, when forming its genre system, philosophical-ethical and artistic-aesthetic concept of man and the world, when developing a system of artistic and visual means, actively used the centuries-old experience of mythology and folklore art of the Ossetians and their ancestors. Literature not only drew plots, a system of images and characters, entire separate genres, poetics from mythology and folklore, but also borrowed their axiological orientation. And, undoubtedly, thanks to this factor, Ossetian literature was able to solve the most urgent problems of reflecting the social existence and social consciousness of its subject-creator at each stage of its history. At the same time, folklore and mythological principles of recreating the «second reality» (i.e. art), reflecting the «first reality», i.e. reality (Yu.B. Borev), played a major role in the process of formation of realism in Ossetian literature as its main artistic method of reflection. This article attempts to analyze the ethnonational folklore and mythological principles of reflecting reality, which formed the basis of realism in Ossetian literature as the most important artistic method in its history.