Die Unendliche Geschichte reads like a modern and very long fairy tale, not least because of the great number of mythological creatures (classical, non-classical and newly invented) appearing in it. It also contains an epic-style battle for the Ivory Tower. Most importantly, the plot is structured in mythological story-patterns, as typical of ancient myths. The first part of the novel, in which Atréju journeys to find a cure for the Childlike Empress, is a quest-story, like those of many ancient Greek or Roman mythological heroes. It includes him needing to pass two sphinxes. The second part of the novel is a kind of creation myth: Bastian, like a god, has the power to create environments and creatures for a new Fantastica. The dangers of this godlike power are shown through the ancient concept of hybris: Bastian’s successes and power go to his head until he almost loses his own identity. However, Bastian’s story does not end like a Greek tragedy, but Bastian realises his fatal flaw, returns his magic amulet and manages to find his way back to his old life.
A number of mythological creatures are only briefly mentioned, adding to the fantasy context of the plot: centaurs, griffin, pegasus, phoenix and unicorns. A flying dragon, the luck dragon Falkor (Fuchur), is a main character of the story, helping Atréju in his quest. Because of his gentle nature and helpfulness, including letting humans ride on his back, Falkor however, does not so much resemble ancient serpent-like, dangerous dragons, but reminds one rather of ancient stories of dolphins helping humans and letting them ride on them (such as told at Pliny, Letters 9.33). Regarding his outerappearance, association with good luck and happy disposition, Falkor is based on dragons from Chinese mythology.
Atréju in his quest has to pass two sphinxes. These sphinxes, unlike those in ancient myth, do not pose riddles, but decide whom they let pass by his worthiness. Those who are not worthy are petrified by the stare of the sphinxes, for the sphinxes’ stare send out all the riddles in the world which will petrify the victim as long as it takes him to solve them all. They let Bastian pass. The association of the sphinxes with riddles is taken from the myth of Oedipus, with the changes I have mentioned.
The werewolf Gmork is in support of the destruction of Fantastica and tries to hunt down and kill Atréju. His appearance is hardly mentioned, except his fearsomeness. Gmork does not manage to catch the boy and is finally capture and chained himself by a dark female character, called Gaya (whose name may be an allusion to the goddess Gaia). When Atréju meets Gmork, he introduces himself as “Nobody” for his protection and in order to trick the werewolf, similar to Odysseus and Polyphemus. Gmork reveals his task to kill Atréju. Atréju then reveals his true identity and that he thinks that he has failed his quest to find the rescuer of Fantastica. This makes Gmork laugh violently and he dies. Atréju approaches the dead werewolf and is bitten by him. This bite, however, saves Atréju’s life, as Gmork’s jaws clenched around the boy’s leg prevent him from falling into the approaching “nothing” until Falkor can rescue him. The idea of a werewolf as a fearful creature who hunts down humans is taken from ancient myth, however we do not hear that the werewolf’s bite will also turn the victim into a werewolf.
Die Unendliche Geschichte was also influenced by the work of Michael Ende’s father, the surrealist painter Edgar Ende (1901–1965).