The problem is the investigation of the possibility of an alternative theory of literature that attempts to show literature's relation to human consciousness. A phenomenological theory of literature is presented as a comprehensive theory of literature as opposed to extrinsic theories that are not comprehensive. The basic assumption is that a comprehensive theory of literature must take into account literature's relationship to human consciousness. The shortcomings of traditional modes of literary theory are discussed in order to provide grounds for the proposed intrinsic alternative. The philosophical foundations for the proposed alternative are laid in the phenomenology of Husserl, Ingarden, Heidegger, and the French existentialists. These four positions are mediated through the introduction of the philosophy of Paul Ricoeur. Finally, the proposed alternative theory of literature is applied to the test case of Joseph Conrad's Lord Jim.