Diegesis

/ˌdaɪəˈdʒiːsɪs/ noun

The fictional world in which a story takes place, including all the events, characters, objects, and settings that exist within that narrative universe. It distinguishes between what exists within the story world versus outside it.

From Greek 'diegesis' meaning 'narration' or 'narrative,' from 'diegeisthai' (to narrate). Originally used in ancient Greek to distinguish between different modes of storytelling, it was revived in 20th-century film and literary theory to analyze the boundaries between fictional worlds and their presentation.

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