This dissertation explores a history of the grotesque and its meaning in art and literature along with those of its related term, the arabesque, since their co-existence, specifically in literature, is later treated by a well-known nineteenth-century American writer in Tales of the Grotesque and Arabesque- Theories or views of the grotesque (used in literature), both in Europe and America, belong to twelve theorists of different eras, ranging from the sixteenth century to the present period, especially Modernism (approximately from 1910 to 1945)--Rabelais, Hegel, Scott, Wright, Hugo, Symonds, Ruskin, Santayana, Kayser, Bakhtin, (William Van) O'Connor, and Spiegel. My study examines the grotesque in American literature, as treated by both nineteenth-century writers--Irving, Poe, Hawthorne, and, significantly, by modernist writers--Anderson, West, and Steinbeck in Northern (or non-Southern) literature; Faulkner, McCullers, and (Flannery) O'Connor in Southern literature. I survey several novels and short stories of these American writers for their grotesqueries in characterization and episodes. The grotesque, as treated by these earlier American writers is often despised, feared, or mistrusted by other characters, but is the opposite in modernist fiction.