This chapter will deal with ways in which the functional approach can be applied in the translation of literary texts (cf. Nord 1988). I will first analyse the actional aspects of intracultural literary communication, trying to identify the features that distinguish literary from non-literary communication. I will then look at the Skopos or assignment of literary translation and the role of equivalence in this context. Using several examples taken from Alice in Wonderland, we will consider a few aspects of literary translation where functional perspectives may help to solve problems or to evaluate existing translations.