The beginning of the twentieth century is characterized as a period of formation of literary prose in Azerbaijan literature, which reminds already formed a new type of British prose. These new development trends appeared in plot, content, style, the world of characters, artistic-philosophical thought as well as in narrative features. The genre of stories deals almost with the same problems in the literature of both nations. The story creativity of Azerbaijan writers as Mammadguluzadeh's and Hagverdiyev's is very similar to the British writer James Joyce's. Considering all this, the mutual study of genre stories of both literature based of these authors works is one of the critical issues in the study of literature. Besides grounding the study of human and environment, self-consciousness, literary solution of other serious problems, the comparative study of Azerbaijani - British literature makes possible to define common artistic-philosophical thoughts, to clarify the typological similarities between our literatures. This comparative analysis from one hand studies the development features of the genre of stories, plot, idea trends, and on the other hand, survey the actual problems of the literature of both countries and the reasons that cause these problems.