What is the term for a story that contains another story within it?

A frame narrative is a narrative technique in which a story is presented within the context of another story. This structure allows for the inclusion of multiple layers of storytelling, where the outer story provides a framework for the inner story to be told. The primary function of the frame narrative is to set the stage for the inner tale, often allowing for a deeper exploration of themes, characters, or events.

In this technique, the outer narrative may introduce characters or a situation and then lead into the inner narrative, which can be an entirely different story, often revealing important context or insights about the characters in the frame. This method has been used effectively in various literary works, enhancing the complexity and richness of the storytelling.

The other options, while they refer to different storytelling techniques, do not specifically denote a story that contains another story within it. Nested narratives suggest a similar idea but are not as widely recognized as the standard term for this type of storytelling. Metafiction refers to literature that self-consciously addresses the devices of fiction, and parallel narratives typically involve two or more stories running concurrently but not necessarily nested.