This study intends to focus on the application of English literature in developing four language skills and language areas like vocabulary, grammar and pronunciation of undergraduate English learners in Bangladesh. The study also pays attention to the role of different genres of literature (i.e. poetry, short fiction, drama and novel) in the way of language teaching-learning process. Data were collected from university students and teachers through qualitative approach. The study revealed that respondents enjoyed learning English language through literature which played a significant role in developing four skills. Moreover, by reading literature, they have got interesting resources with authentic context which have provided a strong motivation for language learning. Literature readers can use authentic models for the norms of language use. It helps to enrich vocabulary and develop analytical and interpretive skills of a learner. In addition, reading literature in native languages was helpful to understand the inner meaning for the respondents. Most of them opined that, grammatical competence would be a prevalent factor to understand literature. They agreed that without having basic knowledge on grammar, a learner might face difficulties to learn a particular language thoroughly. Hence, they identified literature as a potential tool for communicative language teaching approach.