Canadian literature can be said to begin in the early 17th century. Reflecting the country‟s dual origin, Canadian literature can be split in to English & French. Margaret Atwood is one of the Canada‟s major contemporary authors. Atwood‟s protagonist Joan Foster is herself a novelist, a writer of costume Gothics.As a young girl, Joan retreats into the fantasy world of romances as way to escape her unhappiness. Joan in an imaginary identification with a desire to be a part of the illusionary world brings a painful realization of herself in midst of Atwood‟s heroines. She even fakes her death in an attempt to recreate the past. Key words: Margaret Atwood, Canadian literature, Self- realization, Lady Oracle.