The Yuan Dynasty was officially established in 1279 when Kublai Khan declared himself emperor after defeating the Southern Song Dynasty. This marked the first time that China was ruled by a foreign power, leading to significant cultural exchanges and innovations. The capital was established in Dadu (modern-day Beijing), which became a center of trade and culture, influencing literature and the arts.

The establishment of the Yuan Dynasty brought about a flourishing of literature, particularly in the form of drama and poetry. Poets like Guan Hanqing emerged, whose works reflected the complexities of life under Mongol rule, blending traditional Chinese themes with new influences from Central Asia, thus enriching the literary landscape.