Literature addresses issues of identity by exploring the complexities of individual and collective identities through characters, narratives, and themes. Through diverse perspectives, authors delve into aspects such as race, gender, culture, sexuality, and social class to reflect and critique society's perceptions of identity. By portraying the struggles, transformations, and self-discoveries of characters, literature offers insights into the fluid and evolving nature of identity and encourages readers to reflect on their own sense of self.