Use literally when you mean something in its real, exact, non-metaphorical sense. Use figuratively when the meaning is imaginative, exaggerated, or metaphorical rather than strictly factual. Cambridge defines literally as using the real or original meaning of a word or phrase, and figuratively as using words in a more imaginative meaning than usual.

✅ The glass literally broke when it hit the floor.

This means the glass really did break.

✅ When she heard the news, it figuratively knocked her off her feet.

This does not mean she physically fell. It means the news shocked her strongly. Britannica defines figuratively as using language with a meaning different from the basic literal one.

✅ He literally ran five miles.
✅ He figuratively ran circles around the competition.

The first is exact. The second is metaphorical.

❌ I literally died laughing.
More exact: ✅ I figuratively died laughing.

In strict usage, literally should mean the thing actually happened. But modern dictionaries also note that literally is often used informally for emphasis even when the statement is exaggerated.

The most common mistake is using literally just to make a sentence sound more dramatic, even when nothing literal happened. That is why people say things like I literally exploded or I literally died laughing. Cambridge includes an informal emphatic use of literally, and Merriam-Webster notes that modern dictionaries recognize an exaggerated use of literally that is not strictly factual.

Another common mistake is assuming figuratively just means “sort of.” It doesn’t. It specifically points to metaphor, image, or non-literal language.

Use this memory rule:

A simple shortcut:

If it really happened, use literally.
If it paints a picture, use figuratively.

And if you are about to write literally for emphasis, ask yourself:

Did this truly happen exactly as written, or am I just turning up the drama?