Beginning with basic postulates of Gadamer’s philosophical hermeneutics, the article challenges the possibility of its application in literary theory. Ther space of Gadamer’s thought, as well as his hermeneutics, opens up a question: “how understanding is possible”? The answers to that question implicate ethico-aesthetical claim of “philosophy of listening” where this dialectics of questions and answers should be established. The proccess of coming to meaning is happening in language, that makes possible, in the worst circumastances, at least to approach to the matter of things, if not to understand it. The interpreteur’s situation is marked with his prejudices, prethinking (Vorurteil), and the situation of a text by its presence, as well as with temporality. It is precisely temporality of artwork, that is the foundation of Gadamer’s conception of tradition, i.e. heritage, which is, under Heidegger’s influence, supplied by regulative characteristics. The gap between two horizons – traditionally-historical and prejudice-interpreteur’s – is solved by “merging of horizons” (Horizontverschmelzung) as the final result of dialogue, and that merging is at the same time the basics of understanding. Even though Gadamer’s hermeneutics was criticized, it was also unsourmountable in the studies of interpreting (literary) texts.