This thesis reports on a mixed-methods descriptive study concerning the students and teachers’ perceptions of the role of literature – and novels in particular – in English language teaching and learning. Literature has always been a perpetual feature of language learning, and the transition from the aesthetic study of literature to its use as a resource for linguistic development in the language classroom has marked its implementation and use. For many decades, the use of literature for language teaching was marginalised because of the advent of communicative language teaching. Nevertheless, the current trend favours a resurgence of interest in using literature for language purposes, appreciating its valuable contribution in English language teaching. However, very limited empirical research has been done to examine the use of novels in language teaching. The quantitative component of this research involved 144 students of an English-speaking private school in Cyprus and 26 English language teachers. Both groups responded to a distinct self-completed questionnaire. A follow-up qualitative investigation was carried out with five of the teachers who completed the questionnaire. Lastly, twelve unstructured, non-participant observations were organised with the students who completed the questionnaire, in their classrooms. For a statistical analysis, IBM SPSS Statistics 19 was used, while the qualitative data analysis was done with NVivo 10 and the results from the quantitative and qualitative enquiry were then integrated in order to respond to six research questions. The findings of the study present the students and teachers’ beliefs on the role of novels in ELT and elucidate the acceptance of novels as an invaluable source of motivating and stimulating activities that can contribute to the increase of students’ language awareness. Additionally, the findings resulting from an examination of the students and teachers’ beliefs substantiate and promote the catalytic role of novels in developing an intercultural awareness, where language and culture are seen as interrelated entities and novels are perceived as vivid cultural representations.