The O. Henry Prize is an annual award recognizing outstanding short stories published in the United States. Established in 1919, it honors the legacy of the American author O. Henry, known for his witty and twisty narratives. The prize aims to celebrate the art of short fiction and encourage writers in this genre. Each year, a panel of judges selects a group of winning stories from those published in various literary magazines. The winners are then compiled into an anthology, showcasing the best in contemporary short fiction. The O. Henry Prize has become a prestigious accolade in the literary community.