The paper presents a comprehensive view of the encounter of the Muslim Orient and the European West in modern Bosniak literature, i.e. in Bosniak literary practice from the late 19th century onwards, up to the present moment, particularly focusing stereotypes and representations of the Muslim Orient and the European West in this context. The Muslim Orient and the European West encounter directly in Bosniak literature especially after the Austro-Hungarian occupation of the Ottoman Bosnia in 1878, which left a deep mark in modern Bosniak literary practice, but also in the culture of Bosniaks and Bosnia-Herzegovina in general, crucially modelling more or less all fundamental processes in modern Bosniak literary history. This is especially the case with the processes of cultural memory in literature and literary "re-creation" of the past, including particularly stereotypes and other representational phenomena.