This review paper explores the importance of stream of consciousness in the portrayal of literary characters in contemporary literature. The study examines the definition and evolution of stream of consciousness, highlighting its historical development and notable pioneers such as James Joyce and Virginia Woolf. It identifies key characteristics and techniques employed in stream of consciousness narratives, emphasizing their role in enhancing character depth and complexity, exploring character thoughts and emotions, breaking conventional narrative structures, and conveying subjectivity and psychological realism.