What term refers to a reference to another work of literature or event?

The term that refers to a reference to another work of literature, person, or event is "allusion." Allusions are often used to enrich a text by connecting it to a broader cultural context or to evoke particular emotions or associations in the reader's mind.

For example, when an author mentions a character from Greek mythology, they are employing allusion to tap into the rich connotations and background of that myth. This helps convey ideas more effectively without lengthy explanations.

In contrast, parody involves humor or satire by imitating styles or genres, a metaphor is a figure of speech that describes one thing as if it were another to imply comparison without using "like" or "as," and an allegory is a narrative that acts as an extended metaphor where characters and events symbolize deeper moral or political meanings. These terms emphasize different aspects of creative language and literary devices, but they do not encapsulate the idea of referencing another work as allusion does.