This paper stemmed from the question, what is the property and value of literary knowledge and what is the value. This question is which phase and function the literary knowledge have. To answer to this question, all of literary knowledge in literature textbook was compiled. These knowledges could be distributed into 3 classes ; the knowledge of text, context, meta-text. The knowledge of text is that of literary text itself. It builds up fluency of communication. For example, the case of quoting a phrase of literary text or a character of story. It is also able to make the members of cultural community confirm and reinforcement the unity or identity. The knowledge of context is that of context of literature, the writer and reader, literacy environment and the other. It is the diachronic cultural background called out by learners as speaker and writer in their communication situation. So it is a marker of cultural identity. It also can be used as the frame or schema in which the communicator comprehend the synchronic aspect of culture. The knowledge of meta-text is the conceptual knowledge required to explain literary text. Its function to both understanding and expression is very important because of its high degree of transference. The leaner as consumer of media can use it as the frame or schema of media language. Literary knowledge is also useful in not only literary education but also language education, because it can be used to ordinary communi- cative situation.