A psychological novel, also called psychological realism, is a work of prose fiction which

places more than the usual amount of emphasis on interior characterization, and on the motives,
circumstances, and internal action which springs from, and develops, external action. The
psychological novel is not content to state what happens but goes on to explain the motivation
of this action. In this type of writing character and characterization are more than usually
important, and they often delve deeper into the mind of a character than novels of other genres.
The psychological novel can be called a novel of the "inner man", so to say. In some cases, the
stream of consciousness technique, as well as interior monologues, may be employed to better
illustrate the inner workings of the human mind at work. Flashbacks may also be featured.

The Tale of Genji, written in 11th century Japan, has often been considered the first
psychological novel.[1] In the west, the origins of the psychological novel can be traced as far
back as Giovanni Boccaccio's 1344 Elegia di Madonna Fiammetta ; that is before the term
psychology was coined.

The first rise of the psychological novel as a genre is said to have started with the sentimental
novel of which Samuel Richardson's Pamela is a prime example.

In French literature, Stendhal's The Red and the Black is often called[citation needed] an early
psychological novel. Madame de La Fayette's The Princess of Cleves, dating back to the 17th
century, is also considered[citation needed] an early precursor of the psychological novel. Knut
Hamsun's debut-novel Hunger is widely recognized as the most significant psychological
novel.[citation needed]

References
1. ^ Jorge Luis Borges, The Total Library:

[The Tale of Genji, as translated by Arthur Waley,] is written with an almost miraculous naturalness, and
what interests us is not the exoticism — the horrible word — but rather the human passions of the novel.
Such interest is just: Murasaki's work is what one would quite precisely call a psychological novel. ... I
dare to recommend this book to those who read me. The English translation that has inspired this brief
insufficient note is called The Tale of Genji.