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This paper emphasizes the significance of Paul Ricoeur’s hermeneutics in interpreting and understanding historical texts. Historical facts are not objects —they require interpretation. Paul Ricoeur argues that history can be compared to fiction as history can never accurately portray the past, and it thus incorporatesfictitious and imaginative elements According to Ricoeur, the idea of historical representation is based on imagination. Only with the help of the imagination can one represent the past and identify with it. Ricoeur’s narrative theory shows that the past is presented as a narrative, and it is reconstructed with the help of narratives. Historical narratives, which reflect the past and therefore include non-referring concepts, can be compared to non-referring concepts of fictional narratives. Non-referring concepts in both historical and fictional narratives require imagination and narrative understanding.