Allusion is a figure of speech, in which an object or circumstance from unrelated context is referred to covertly or indirectly. It is left to the audience to make the direct connection. Where the connection is directly and explicitly stated (as opposed to indirectly implied) by the author, it is instead usually termed a reference. In the arts, a literary allusion puts the alluded text in a new context under which it assumes new meanings and denotations. It is not possible to predetermine the nature of all the new meanings and inter-textual patterns that an allusion will generate. Literary allusion is closely related to parody and pastiche, which are also "text-linking" literary devices.

In a wider, more informal context, an allusion is a passing or casually short statement indicating broader meaning. It is an incidental mention of something, either directly or by implication, such as "In the stock market, he met his Waterloo."