This article provides a comprehensive analysis of the functional role of dialogue forms in literary discourse. The aim of the research is to identify the multifaceted functions of dialogic structures in fiction and to examine their semantic, psychological, and communicative dimensions. The theoretical foundation is based on both Kazakhstani and international studies in the fields of discourse, dialogism, and stylistics. The study uses character dialogues from Sh. Murtaza’s Red Falcon and S. Yelubai’s White Yurt as primary material. A combined methodological approach incorporating linguopoetic, semantic, and discursive analysis was applied. The findings reveal three core functions of dialogue: communicative, psychological, and meaning generating. The study demonstrates that dialogue plays a key role in shaping characters, conveying emotional depth, and embedding subtext. Overall, the research contributes to the further development of Kazakh prose analysis within the framework of dialogic poetics.