This article explores the nature, essence, and specificity of mythological symbolism as a structural and substantive trend in literary and folkloric interaction in Ossetian literature from the 1920s to 1950s. Abstract thinking developed alongside the evolution of the social being and consciousness of the ancient ancestors of the Ossetians. From its inception, the artistic consciousness of the Ossetians and their ancestors skillfully and creatively utilized the specificity of abstract thinking – namely, its ability to designate certain objects, things, and phenomena using other objects, drawing on their specific qualities and properties. This technique significantly enriched the aesthetic possibilities and perspectives of artistic consciousness in the process of generalizing the typification of phenomena in the surrounding world and enabled an important step toward the establishment – in the distant future – of a realistic method of artistic reflection of reality. This article examines the essence of this problem through the analysis of two novels: A. Tsalikov’s «Brother Against Brother» (1926) and E. Uruymagova’s «Towards Life» (1948), in which mythological symbolism appears as one of the most important structural and substantive directions of literary-folklore interaction. The article addresses a topic of current interest in Ossetian literary criticism. Indeed, the current level of development of scholarly thought requires a more profound understanding and interpretation of literary-folklore interaction in Ossetian literature. The scientific novelty of the study is also evident. For the first time in Ossetian literary criticism, the essence and characteristics of literary-folklore interaction, in particular, its structural and substantive direction, which is mythological symbolism, are so thoroughly revealed. The purpose of the article is to examine the role of mythological symbolism as a structural and substantive direction of literary-folklore interaction in the development of the artistry of the two aforementioned novels. The results obtained can be used in further studies of literary-folkloric interactions.