In this article History, Historicism and new Historicism have been explained in a simplified way. Attention has been focused on the nature, problems, and results of their application. In the process of application, however examples and instances have been given from Urdu literature. It has also been observed which of the Urdu critics have understood the history, historicism of and neo-historicism and have expressed their views in this particular subject.The discussion on the work of these critics has revealed their approaches.It has also been observed from what angle the English critics of Neo-historicism have looked at its Marxist aspect of Progressive Criticism and Neo-Historicism.The article also tries to explain the nature and difference of history, in literature and history and also introduces the means by which neo-historicism decodes historical narratives while considering history and literary history as text. This way necessary to make the English critical theory popular in Urdu. While doing this, the views of both Urdu and English critics have been taken into account.